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Of the thousands of stocks that are currently traded in the market, it is difficult to identify which ones will truly generate strong returns. Hedge funds and institutional investors spend millions of dollars on MBA and PhD analysts who are industry experts and well connected to other industry insiders and media. Individual investors can join hedge funds employing these talents and thus benefit from their vast resources and knowledge. We analyze quarterly 13F deposits from nearly 900 hedge funds, and by examining the smart money sentiment that surrounds a stock, we can determine if it has the potential to beat the market in the long term. Therefore, let’s take a closer look at what Equity Lifestyle Properties, Inc.’s smart money thinks (NYSE:ELS).
Equity Lifestyle Properties, Inc. (NYSE:ELS) shareholders have witnessed a drop in hedge fund sentiment in recent months. Equity Lifestyle Properties, Inc. (NYSE:ELS) was in 25 hedge fund portfolios at the end of the second quarter of 2021. The all-time high for this statistic is 31. There were 29 hedge funds in our database with ELS holdings at the end of March. Our calculations also showed that ELS is not one of the 30 most popular stocks among hedge funds (click for Q2 ranking).
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Noam Gottesman of GLG Partners
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Do hedge funds think ELS is a good stock to buy now?
At the end of the second quarter, 25 of the hedge funds tracked by Insider Monkey were long on this stock, a change of -14% from the previous quarter. The graph below shows the number of hedge funds with a bullish position in ELS over the past 24 quarters. With hedge fund positions undergoing their usual ebb and flow, there are a few key hedge fund managers who were significantly increasing their holdings (or already accumulating large positions).
Among the funds tracked by Insider Monkey, that of John Khoury Capital of the long pond holds the largest position in Equity Lifestyle Properties, Inc. (NYSE: ELS), valued at nearly $ 101.2 million, corresponding to 3.5% of its total 13F portfolio. On the heels of Long Pond Capital, GLG Partners, led by Noam Gottesman, holds a position of $ 62.4 million; 0.2% of its 13F portfolio is allocated to society. Other smart money members who hold long positions are DE Shaw of DE Shaw, Renaissance Technologies and Waratah Capital Advisors of Brad Dunkley and Blair Levinsky. In terms of the portfolio weights assigned to each position, Long Pond Capital assigned the largest weight to Equity Lifestyle Properties, Inc. (NYSE: ELS), approximately 3.51% of its 13F portfolio. Capital V3 is also relatively very bullish on the stock, designating 2.82% of its 13F equity portfolio to ELS.
Due to the fact that Equity Lifestyle Properties, Inc. (NYSE: ELS) has faced a decline in interest from hedge fund managers, we can see that there is a sect of funds that have sold the all of their assets before the third quarter. It should be mentioned that Stuart J. Zimmer’s Zimmer Partners cut the biggest investment of the 750 funds, followed by Insider Monkey, valued at around $ 30.2 million in stocks. the Paul Marshall and Ian Wace fonds, Marshall wace srl, also bid farewell to its stock, valued at approximately $ 29.3 million. These transactions are intriguing to say the least, as total hedge fund interest fell by 4 funds as the third quarter approached.
Now let’s take a look at the hedge fund activity in other stocks – not necessarily in the same industry as Equity Lifestyle Properties, Inc. (NYSE: ELS) but of similar value. We’ll take a look at Advance Auto Parts, Inc. (NYSE:PAA), WP Carey Inc. (NYSE:WPC), Mohawk Industries, Inc. (NYSE:MHK), Elastic NV (NYSE:ESTC), Masimo Corporation (NASDAQ:MASI), CBOE Global Markets Inc (NASDAQ:CBOE) and Lennox International Inc. (NYSE:LII). The market values ​​of this group of shares are closest to the market value of ELS.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position AAP, 34.849879, -9 WPC, 29.147455.6 MHK, 44.1311640.8 ESTC, 55.3062021.3 MASI, 28.317268, -7 CBOE, 31.826143, -2 LII, 26.465734.1 Medium, 35.3.997163.0 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 35.3 hedge funds with bullish positions and the average amount invested in these stocks was $ 997 million. This figure was $ 478 million in the case of ELS. Elastic NV (NYSE:ESTC) is the most popular action in this table. On the other hand, Lennox International Inc. (NYSE:LII) is the least popular with only 26 bullish hedge fund positions. Compared to these stocks, Equity Lifestyle Properties, Inc. (NYSE: ELS) is even less popular than LII. Our overall hedge fund sentiment score for ELS is 25.2. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Hedge funds have clearly ditched ELS because the stock has generated strong returns, although the consensual choices of hedge funds have always produced respectable returns. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22 and have consistently beaten the market by 1.6 percentage points. A small number of hedge funds were also right to bet on ELS, as the stock has returned 16.4% since the second quarter (through October 22) and outperformed the market by an even larger margin.
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Disclosure: none. This article originally appeared on Monkey initiate.
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