In this article we will check the evolution of hedge fund sentiment towards Global-E Online Ltd. (NASDAQ:GLBE) and determine if it’s a good investment right now. We at Insider Monkey love to check out what billionaires and hedge funds think of the company before spending days researching it. Due to the 2 and 20 payout structure, hedge funds have more incentives and resources than the average investor. Funds have access to expert networks and get advice from industry insiders. It also employs several Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus choices have historically outperformed the market after risk adjustments.
Does Global-E Online Ltd. (GLBE) Good stock to buy now? Informed investors are becoming more confident. The number of bullish hedge fund bets rose by 22 recently. Global-E Online Ltd. (NASDAQ:GLBE) was in 22 hedge fund portfolios at the end of Q3 2021. Our calculations also showed that GLBE is not among the 30 most popular hedge fund stocks (click for Q2 ranking).
At Insider Monkey, we look for multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we review lists like the 10 best electric vehicle stocks to pick the next Tesla that will generate a 10x return. Although we recommend positions in only a small portion of the companies we analyze, we check as many stocks as possible. Now let’s check out the recent hedge fund actions surrounding Global-E Online Ltd. (NASDAQ: GLBE).
Colin Moran at Abdiel Capital Advisors
Do hedge funds think GLBE is a good stock to buy now?
At the end of the third quarter, a total of 22 hedge funds tracked by Insider Monkey were bullish in this stock, a change of 22 from the previous quarter. Below, you can check out the change in hedge fund sentiment toward GLBE over the last 25 quarters. So, let’s examine which hedge funds have been among the top stockholders and which hedge funds have been making big strides.
Among these funds, Abdiel Capital Advisors held the most valuable stake in Global-E Online Ltd. (NASDAQ:GLBE), which was valued at $369.7 million at the end of the third quarter. In second place was Spruce House Investment Management, which raised $147 million in stock. Zevenbergen Capital Investments, Whale Rock Capital Management and Holocene Advisors were very fond of the stock, and they became one of the largest hedge fund owners in the company. In terms of portfolio weights assigned to each position, Abdiel Capital Advisors assigned the largest weight to Global-E Online Ltd. (NASDAQ:GLBE), about 9.1% of its 13F portfolio. Spruce House Investment Management is also relatively bullish on the stock, having allocated 3.81 percent of the 13F stock portfolio to GLBE.
Now, major hedge funds have been opening themselves up. Abdiel Capital Advisors, managed by Colin Moran, has created the largest position in Global-E Online Ltd. (NASDAQ: GLBE). Abdul Karim Capital Consulting invested $369.7 million in the company at the end of the quarter. Holocene Advisors of Brandon Haley also made an investment of $84.5 million per share during the quarter. Other trusts with new positions in GLBE are Andrew Emerman and Jeremy Schiffman Palestra Capital Management, Joseph Samuels Islet Management, Michael Rockefeller and Woodline Partners of Karlakrucker.
Let’s now look at hedge fund activity in other stocks similar to Global-E Online Ltd. (NASDAQ: GLBE). These stocks are Natera Inc (NASDAQ: NTRA), The Toro Company (NYSE: TTC), Vereit Inc (NYSE: VER), Carlisle Companies, Inc. (NYSE: CSL), BorgWarner Inc. (NYSE: BWA), Pegasystems Inc (NASDAQ: PEGA) and IAC/InterActiveCorp (NASDAQ: IAC). All of the market capitalization of these shares corresponds to the market capitalization of GLBE.
[table] Index, Number of HFs with Positions, Total Value of HF Positions (x1000), Change in HF Position NTRA, 50,1800268, -2 TTC, 29,894310, -3 VER, 22,946495,0 CSL, 14,89365, -3 BWA, 21,170260, -6 PEGA, 251891439, -2 IAC, 47,1426626, -3 Medium, 29.71031252, -2.7 [/table]
View the table here if you encounter formatting problems.
As you can see, these stocks had an average of 29.7 hedge funds with bullish positions and the average amount invested in these stocks was $1031 million. That number was $1,002 million in the case of GLBE. Natera Inc (NASDAQ:NTRA) is the most popular stock on this table. On the other hand, Carlisle Companies, Inc. (NYSE: CSL) is the least known with only 14 bullish hedge fund positions. Global-E Online Ltd. (NASDAQ:GLBE) Not the least popular stock in this group but interest on hedge funds is still below average. The GLBE’s overall hedge fund morale score is 27.8. Stocks with more hedge fund positions relative to other stocks and also relative to their historical range get a higher sentiment score. This is a rather negative sign and we prefer to spend our time researching the stocks that hedge funds are piling on. Our calculations showed that the 5 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 rose by 29.6% in 2021 and again outperformed the market by 3.6 percentage points. Unfortunately, GLBE was not as popular as these 5 stocks (hedge fund sentiment was quite bearish); GLBE investors were disappointed as the stock has returned -11.7% since the end of September (as of 12/31) and has underperformed the market. If you are interested in investing in big cap stocks with huge upside potential, you should check out the top 5 popular hedge fund stocks as most of these stocks have already outperformed the market in 2021.
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Disclosure: none. This article was originally published on Insider Monkey.