In this article, we analyze whether Park Hotels & Resorts Inc. (NYSE:NS) is a good investment right now by following the example of some of the best investors in the world and piggybacking their ideas. There is no better way to harness the immense resources and analytical skills of these companies for us than to follow them with their best ideas. While not all of these tips will be winners, our research shows that these tips have historically outperformed the market by double digits each year.
is Park Hotels & Resorts Inc. (NYSE:NS) a wonderful investment right now? The best stock pickers became more optimistic. The number of bullish hedge fund positions has increased by 5 recently. Park Hotels & Resorts Inc. (NYSE:NS) was in 18 hedge fund portfolios at the end of the first quarter of 2021. The all-time high of this statistic is 34. Our calculations have also shown that PK is not one of the The 30 most popular stocks among hedge funds (Click for the Q1 ranking). At the end of December, there were 13 hedge funds with PK holdings in our database.
So why do we pay attention to hedge fund sentiment before making investment decisions? Our research has shown that hedge fund small-cap stock selection beat the market by double digits annually between 1999 and 2016, but the outperformance margin has been decreasing in recent years. Nevertheless, we were able to identify a selected group of hedge fund holdings in advance that exceeded the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the movements of corporate insiders and hedge funds, and we believe retail investors can benefit a lot from reading hedge fund investor letters and 13F filings.
Ken Heebner from Capital Growth Management
At Insider Monkey, we search multiple sources to discover the next great investment idea. For example, the pet market is growing at an annual rate of 7% and is projected to reach $ 110 billion in 2021 The 5 best stocks for animal lovers. We go lists like 15. through best Jim Cramer stocks to identify the next Tesla that will deliver oversized returns. While we recommend positions in just a tiny fraction of the companies we analyze, we review as many stocks as possible. We read letters from hedge fund investors and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s take a look at the new hedge fund promotion regarding Park Hotels & Resorts Inc. (NYSE:NS).
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Do hedge funds think PK is a good stock to buy now?
At the end of the first quarter, a total of 18 of the hedge funds monitored by Insider Monkey were long on this stock, which corresponds to a change of 38% compared to the previous quarter. In comparison, a year ago 26 hedge funds held stocks or bullish call options in PK. As the capital of smart money changes hands, there are some notable hedge fund managers who have significantly increased their stakes (or have already built large positions).
Is PK a good stock to buy?
The largest stake in Park Hotels & Resorts Inc. (NYSE: PK) held Capital growth management, which held $ 27.6 million in shares at the end of December. It was followed by Chescapmanager LLC with a position of $ 21.6 million. Other investors optimistic about the company included Broad Bay Capital, Kettle Hill Capital Management, and Two Sigma Advisors. In relation to the portfolio weights assigned to each position Kettle Hill Capital Management has the largest weighting on Park Hotels & Resorts Inc. (NYSE: PK), which represents approximately 2.59% of its 13F portfolio. Capital Growth Management is also relatively bullish on the stock, distributing 2.52 percent of its 13F stock portfolio to PK.
As a result, some big names set out on their own. Broad Bay Capital, managed by Richard Scott Greeder, initiated the largest position in Park Hotels & Resorts Inc. (NYSE: PK). At the end of the quarter, Broad Bay Capital had invested $ 14.5 million in the company. Anand Parekh’s Alyeska Investment Group also invested $ 5.2 million in the stock during the quarter. The other funds with brand new PK positions are Tudor Investment Corp from Paul Tudor Jones, DE Shaw from DE Shaw and Minhua Zhang Sweat capital management.
Now let’s take a look at hedge fund activity in other stocks – not necessarily in the same industry as Park Hotels & Resorts Inc. (NYSE: PK), but similarly valued. These stocks are CIT Group Inc. (NYSE:CIT), Galapagos NV (NASDAQ:GLPG), Avis Budget Group Inc. (NASDAQ:DARE), ASGN Incorporated (NYSE:ASGN), Flowserve Corporation (NYSE:FLS), Cyberark Software Ltd (NASDAQ:CYBR) and Valmont Industries, Inc. (NYSE:VMI). The market capitalizations of all of these stocks are equal to the market capitalization of PK.
[table] Ticker, number of HRs with positions, total value of HR positions (x1000), change in HR position CIT, 28.802021, -3 GLPG, 20.167561.8 CAR, 21.1724243, -7 ASGN, 20.78754 .6 FLS, 29.174239.8 CYBR, 32.502899.5 VMI, 23.401266, -3 average, 24.7.550140.2 [/table]
See table here when formatting problems occur.
As you can see, these stocks had an average of 24.7 hedge funds with bullish positions and the average amount invested in these stocks was $ 550 million. In the case of PK, it was $ 101 million. Cyberark Software Ltd (NASDAQ:CYBR) is the most popular stock in this table. On the other hand, Galapagos NV (NASDAQ:GLPG) is the least popular, with only 20 bullish hedge fund positions. Compared to these stocks, Park Hotels & Resorts Inc. (NYSE: PK) is even less popular than GLPG. Our hedge fund sentiment score for PK is 25.9 overall. Stocks with a higher number of hedge fund positions relative to other stocks and relative to their historical range receive a higher sentiment score. Hedge funds dodged a bullet by taking a bearish stance on PK. Our calculations showed that the top 10 most popular hedge fund stocks returned 95.8% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.5% through July 23, 2021 but were able to beat the market again by 10.1 percentage points. Unfortunately, PK wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was very pessimistic); PK investors were disappointed as the share had returned -13.5% since the end of the first quarter (until July 23) and lagged behind the market. If you’re interested in investing in large-cap stocks with big upside potential, this is the place to go Top 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider monkey.
