Hedge funds buy BJ’s Wholesale Club Holdings, Inc. (BJ)

Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proven to have great stock-picking abilities over the years (which is why their assets underperform. management continue to swell). We believe that hedge fund sentiment should serve as an essential tool in an individual investor’s stock selection process, as it can offer a great idea of ​​what the brightest minds in the financial industry think about specific stocks. . After all, these people have access to the smartest analysts and expensive data / information sources that individual investors cannot match. So, should you consider investing in BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ)? Smart money sentiment may provide an answer to this question.

East BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) a buy now? Investors who are in the know had a bullish outlook. The number of long positions in hedge funds has increased by 7 recently. BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) was listed in 24 hedge fund portfolios at the end of the third quarter of 2021. The all-time high for this statistic is 33. Our calculations also showed that BJ is not in the 30 most popular stocks among hedge funds (click for Q3 ranking). There were 17 hedge funds in our database with BJ holdings at the end of June.

Noam Gottesman GLG Partners

Noam Gottesman of GLG Partners

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium prices have more than doubled in the past year, so we’re going through lists like the top 10 electric vehicle stocks to pick the next Tesla that will deliver 10x performance. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. With all of that in mind, let’s check out the key hedge fund action surrounding BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ).

Do hedge funds think BJ is a good stock to buy now?

Heading into the fourth quarter of 2021, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 41% change from the previous quarter. On the other hand, there were a total of 31 hedge funds with a bullish position on BJ a year ago. With the whirlwind of hedge fund sentiment, there is a select group of notable hedge fund managers who were drastically increasing their stakes (or already racking up large positions).

Is BJ a good stock to buy?

Is BJ a good stock to buy?

According to Insider Monkey’s hedge fund database, Dmitry Balyasny’s Balyasny Asset Management holds the largest position in BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ), worth nearly $ 29 million, representing 0.1% of its total portfolio of 13F. The second most optimistic fund manager is Citadel Investment Group, managed by Ken Griffin, which has a position of $ 24.8 million; less than 0.1 %% of its 13F portfolio is allocated to the company. Other bullish hedge funds and institutional investors include Matthew Hulsizer’s PEAK6 Capital Management, Israel Englander’s Millennium Management, and Noam Gottesman’s GLG Partners. In terms of the portfolio weights assigned to each position, Game Creek Capital assigned the largest weight to BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ), approximately 1.48% of its 13F portfolio. Sirios Capital Management is also relatively very bullish on the stock, designating 0.44% of its stock portfolio 13F to BJ.

With a general uptrend among the heavyweights, specific fund managers have jumped head first into BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ). Balyasny Asset Management, managed by Dmitry Balyasny, was the largest position in BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ). Balyasny Asset Management had invested $ 29 million in the company at the end of the quarter. Simon Sadler’s Segantii Capital also invested $ 7.4 million in the stock during the quarter. The following funds were also among the new investors of BJ: Point72 Asset Management of Steve Cohen, Renaissance Technologies and TwinBeech Capital of Jinghua Yan.

Now let’s review hedge fund activity in other stocks – not necessarily in the same industry as BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) but of similar value. These stocks are Autoliv Inc. (NYSE: ALV), YETI Holdings, Inc. (NYSE: YETI), BRP Inc. (NASDAQ: DOOO), People’s United Financial, Inc. (NASDAQ: PBCT), Encompass Health Corporation (NYSE: EHC), Stevanato Group SpA (NYSE: STVN) and Sotera Health Company (NASDAQ: SHC). The market values ​​of this group of stocks are closest to the market value of BJ.

[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF ALV, 19,761532, -4 YETI, 29,255906, -5 DOOO, 16,119867, -3 PBCT, 19,222656 , -5 EHC, 44.708069,2 STVN, 16.142293,16 SHC, 20.396497,2 Medium, 23.3.372403,0.4 [/table]

Check the table here if you have formatting issues.

As you can see, these stocks had an average of 23.3 hedge funds with bullish positions and the average amount invested in these stocks was $ 372 million. That figure was $ 130 million in the case of BJ. Encompass Health Corporation (NYSE: EHC) is the most popular share in this table. On the other hand, BRP Inc. (NASDAQ: DOOO) is the least popular with only 16 bullish hedge fund positions. BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for BJ is 46.1. 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. 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 31.1% in 2021 through December 9 and have consistently beaten the market by 5.1 percentage points. Hedge funds were also right to bet on BJ as the stock has returned 19.4% since the end of the third quarter (through 9/12) and has outperformed the market. Hedge funds have been rewarded for their relative optimism.

Receive real-time email alerts: Follow Bj’s Wholesale Club Holdings Inc. (NYSE: BJ)

Suggested articles:

Disclosure: none. This article originally appeared on Insider Monkey.

About Timothy Cheatham

Check Also

Analysts Forecast Costco Wholesale Co. (NASDAQ:COST) to Post Quarterly Sales of $50.84 Billion

Wall Street analysts expect Costco Wholesale Co. (NASDAQ:COST – Get Rating) to report sales of …