Many distinguished buyers, together with Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious relating to the present bull market and missed out because the inventory market reached one other excessive in current weeks. Then again, expertise hedge funds weren’t timid and registered double digit market beating positive factors. Financials, vitality and industrial shares initially suffered essentially the most however many of those shares delivered robust returns since November and hedge funds really elevated their positions in these shares. On this article we are going to learn how hedge fund sentiment in direction of Asbury Automotive Group, Inc. (NYSE:ABG) modified not too long ago.
Asbury Automotive Group, Inc. (NYSE:ABG) buyers ought to take note of a lower in exercise from the world’s largest hedge funds in current months. Asbury Automotive Group, Inc. (NYSE:ABG) was in 22 hedge funds’ portfolios on the finish of the third quarter of 2021. The all time excessive for this statistic is 33. Our calculations additionally confirmed that ABG is not among the many 30 hottest shares amongst hedge funds (click on for Q2 rankings).
At Insider Monkey, we scour a number of sources to uncover the subsequent nice funding concept. For instance, lithium costs have greater than doubled over the previous yr, so we undergo lists like the ten finest EV shares to select the subsequent Tesla that can ship a 10x return. Despite the fact that we suggest positions in solely a tiny fraction of the businesses we analyze, we try as many shares as we will. Now let’s check out the current hedge fund motion surrounding Asbury Automotive Group, Inc. (NYSE:ABG).
David Abrams of Abrams Capital Administration
Do Hedge Funds Assume ABG Is A Good Inventory To Purchase Now?
At third quarter’s finish, a complete of twenty-two of the hedge funds tracked by Insider Monkey had been bullish on this inventory, a change of -15% from the earlier quarter. The graph under shows the variety of hedge funds with bullish place in ABG during the last 25 quarters. With the sensible cash’s capital altering palms, there exists a choose group of noteworthy hedge fund managers who had been upping their stakes considerably (or already collected giant positions).
In keeping with Insider Monkey’s hedge fund database, Abrams Capital Administration, managed by David Abrams, holds the most important place in Asbury Automotive Group, Inc. (NYSE:ABG). Abrams Capital Administration has a $416.7 million place within the inventory, comprising 9.1% of its 13F portfolio. The second largest stake is held by Impactive Capital, led by Lauren Taylor Wolfe, holding a $199.9 million place; the fund has 15.7% of its 13F portfolio invested within the inventory. Different members of the sensible cash with comparable optimism embody Jeffrey Jacobowitz’s Simcoe Capital Administration, Ricky Sandler’s Eminence Capital and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital. When it comes to the portfolio weights assigned to every place Impactive Capital allotted the most important weight to Asbury Automotive Group, Inc. (NYSE:ABG), round 15.68% of its 13F portfolio. Simcoe Capital Administration can be comparatively very bullish on the inventory, designating 12.7 % of its 13F fairness portfolio to ABG.
Because of the truth that Asbury Automotive Group, Inc. (NYSE:ABG) has witnessed falling curiosity from hedge fund managers, logic holds that there exists a choose few cash managers that determined to unload their positions fully within the third quarter. Intriguingly, Jerome L. Simon’s Lonestar Capital Administration stated goodbye to the most important place of the 750 funds monitored by Insider Monkey, valued at an estimated $2.1 million in inventory. Alec Litowitz and Ross Laser’s fund, Magnetar Capital, additionally offered off its inventory, about $0.4 million value. These bearish behaviors are fascinating, as combination hedge fund curiosity was lower by 4 funds within the third quarter.
Let’s now check out hedge fund exercise in different shares much like Asbury Automotive Group, Inc. (NYSE:ABG). We are going to check out First Hawaiian, Inc. (NASDAQ:FHB), Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), Focus Monetary Companions Inc. (NASDAQ:FOCS), PennyMac Monetary Companies Inc (NYSE:PFSI), Japanese Bankshares, Inc. (NASDAQ:EBC), Tronox Holdings Plc (NYSE:TROX), and Definitive Healthcare Corp. (NASDAQ:DH). This group of shares’ market caps match ABG’s market cap.
[table] Ticker, No of HFs with positions, Complete Worth of HF Positions (x1000), Change in HF Place FHB,14,165509,4 TKC,9,22874,2 FOCS,16,101085,-3 PFSI,33,740702,7 EBC,19,126087,-1 TROX,38,356965,2 DH,23,210282,23 Common,21.7,246215,4.9 [/table]
View desk right here in the event you expertise formatting points.
As you may see these shares had a median of 21.7 hedge funds with bullish positions and the typical quantity invested in these shares was $246 million. That determine was $996 million in ABG’s case. Tronox Holdings Plc (NYSE:TROX) is the most well-liked inventory on this desk. Then again Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is the least in style one with solely 9 bullish hedge fund positions. Asbury Automotive Group, Inc. (NYSE:ABG) shouldn’t be the most well-liked inventory on this group however hedge fund curiosity remains to be above common. Our general hedge fund sentiment rating for ABG is 43.4. Shares with increased variety of hedge fund positions relative to different shares in addition to relative to their historic vary obtain the next sentiment rating. It is a barely constructive sign however we might reasonably spend our time researching shares that hedge funds are piling on. Our calculations confirmed that prime 5 hottest shares amongst hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 share factors. These shares gained 29.6% in 2021 and beat the market once more by 3.6 share factors. Sadly ABG wasn’t almost as in style as these 5 shares and hedge funds that had been betting on ABG had been dissatisfied because the inventory returned -12.2% because the finish of September (by means of 12/31) and underperformed the market. In case you are excited by investing in giant cap shares with large upside potential, it is best to try the highest 5 hottest shares amongst hedge funds as many of those shares already outperformed the market since 2019.
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Disclosure: None. This text was initially printed at Insider Monkey.