With the round of second quarter 13F deposits behind us, it’s time to take a look at the stocks that some of the world’s top fund managers preferred to invest or sell before Q3 2021. One of those shares was The Western Union Company (NYSE: WU).
Western Union Company (NYSE: WU) has recently received increased support from the world’s most elite fund managers. The Western Union Company (NYSE: WU) was listed in 31 hedge fund portfolios at the end of June. The all-time high for this statistic is 36. Our calculations have also shown that WU is not in the top 30 most popular stocks among hedge funds (click for Q2 rank).
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David Siegel of Two Sigma Advisors
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Do hedge funds think WU is a good stock to buy now?
At the end of the second quarter, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 11% from the first quarter of 2020. Below you can see the development of the sentiment of hedge funds towards WU over the past 24 quarters. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, 0, managed by John Overdeck and David Siegel, holds the most valuable position in The Western Union Company (NYSE: WU). Two Sigma Advisors holds a position of $ 112.4 million in the stock, representing 0.3% of its 13F portfolio. Sitting in place # 2 is 0, managed by DE Shaw, which has a position of $ 103.8 million; 0.1% of its 13F portfolio is allocated to the security. Other peers who hold long positions include the 0 from Peter Rathjens, Bruce Clarke and John Campbell, the 0 from Cliff Asness and the 0 from Israel Englander. In terms of the portfolio weight assigned to each position, Neo Ivy Capital assigned the greatest weight to The Western Union Company (NYSE: WU), approximately 0.88% of its 13F portfolio. TwinBeech Capital is also relatively very bullish on the stock, setting aside 0.38% of its 13F equity portfolio to WU.
Therefore, a few big names were leading the herd of bulls. Bridgewater Associates, led by Ray Dalio, initiated the most valuable position in The Western Union Company (NYSE: WU). Bridgewater Associates had invested $ 1.6 million in the company at the end of the quarter. Edward McBride’s Karim Abbadi and Centiva Capital also invested $ 1.2 million in the stock during the quarter. The following funds were also among WU’s new investors: Sciencast Management by Qing Li, Neo Ivy Capital by Renee Yao and Echo Street Capital Management by Greg Poole.
Let’s review hedge fund activity in other stocks similar to The Western Union Company (NYSE: WU). We’ll be looking at Guidewire Software Inc (NYSE: GWRE), Aspen Technology, Inc. (NASDAQ: AZPN), Store Capital Corporation (NYSE: STOR), CubeSmart (NYSE: CUBE), Alleghany Corporation (NYSE: Y), AECOM (NYSE: NYSE: ACM) and AptarGroup, Inc. (NYSE: ATR). The market value of this group of shares is closest to the market value of WU.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position GWRE, 27.1843941, -6 AZPN, 23.665739, -9 STOR, 13.899083.0 CUBE, 18.350185, -7 Y, 32.387432, -2 ACM, 32.791285, -6 ATR, 27.331504.7 Medium, 24.6.752738, -3.3 [/table]
Check the table here if you have formatting issues.
As you can see, these stocks had an average of 24.6 hedge funds with bullish positions and the average amount invested in these stocks was $ 753 million. That figure was $ 370 million in the case of WU. Alleghany Corporation (NYSE: Y) is the most popular stock in this table. On the other hand, Store Capital Corporation (NYSE: STOR) is the least popular with only 13 bullish hedge fund positions. The Western Union Company (NYSE: WU) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for WU is 81.2. 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. This is a slightly positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations showed that the 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 24.9% in 2021 through October 15 and again beat the market by 4.5 percentage points. Unfortunately, WU was not as popular as these 5 stocks and the hedge funds that bet on WU were disappointed as the stock returned -6.4% since the end of June (through 10/15) and under -performed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Insider Monkey.