Did the coverage budget do the same at Cars.com Inc. (CARS)?

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The last era of 13F reports has arrived and is gone, and Insider Monkey is back at the forefront when it comes to using this gold data mine. At Insider Monkey, we have examined 821 13F deposits that are required for well-known hedging and pricing budget investors to register through the SEC. 13F deposits show the fund positions and investor portfolio as of March 31, one week after the market depression. We’re almost done in the quarter. Investors made the decision to bet on economic recovery and an uptick in the inventory market. The index generated a retracement of nearly 20% this quarter. In this article, we took a look at how the coverage budget marketed Cars.com Inc. (NYSE: CARS) and found out if wise cash was wise in that inventory.

Cars.com Inc. (NYSE: CARS) lately is a smart investment? Inventory collectors were in pessimistic humor. The number of bullish positions in the hedging budget has recently decreased to 10. Our calculations also showed that CARS is not one of the 30 most sensitive inventories among the coverage budget (click for the Q1 rating and watch the video for a quick review of the five most sensitive inventories). Video: Watch our video on the five top inventories of popular hedge funds.

In the 21st century investor toolset, there are many strategies used through investors to evaluate their assets. The ultimate cutting-edge strategies are hedging budget and insider trading. Our experts have shown that, historically, those who adhere to the maximum possible productive options of maximum productive fund managers can exceed the S-P 500 across a very good margin (see main points here).

Jim Simons by Renaissance Technologies [/ caption]

At Insider Monkey, we explored several resources to notice the next wonderful investment idea. For example, on one site, we found that NBA champion Isiah Thomas is now the CEO of this hash company. The same site also speaks of a snack manufacturer that is developing up to 30% annually. While we hold positions in only a small portion of the corporations we analyze, we verify as many inventories as possible. We read letters from hedge fund investors and pay attention to the inventory market arguments at hedge fund conferences. The sentiment of hedge funds towards Tesla peaked at the end of 2019 and Tesla’s inventories have more than tripled this year. We’re looking to identify other winners of the EV revolution, so if you have smart ideas, send us an email. With that in mind, let’s take a look at the inventory of the newest hedge funds surrounding Cars.com Inc. (NYSE: CARS).

Heading into the second quarter of 2020, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -29% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CARS over the last 18 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to Insider Monkey’s hedge fund database, Greenvale Capital, controlled through Bruce Emery, ranks the largest in Cars.com Inc. (NYSE: CARS). Greenvale Capital has an equity position of $18.3 million, or 4.8% of its 13F portfolio. The top positive fund manager at the moment is Baupost Group, led by Seth Klarman, with a position of $12.9 million; 0.2% of your 13F portfolio is allocated to the stock. Other professional fund managers with long positions come with Robert Pitts’ Steadfast Capital Management, Stephen Mildenhall’s Contrarius Investment Management and John Petry’s Sessa Capital. In terms of portfolio weights for each position, Greenvale Capital has assigned the highest weighting to Cars.com Inc. (NYSE: CARS), which accounts for approximately 4.8% of its 13F portfolio. Rutabaga Capital Management is also positive about the shares, as it distributes 1.02% of its 13F equity portfolio to CARS.

Since Cars.com Inc. (NYSE: CARS) has noticed a decrease in interest on the entire coverage budget we tracked, we can see that there are some budget decisions that abandoned all of their holdings in the first quarter. It should be noted that Andrew Kurita’s Kettle Hill Capital Management has abandoned the largest investment of all hedges monitored through Insider Monkey, comprising approximately $7.5 million in shares. Avi Fruchter’s fund, Anavon Capital, also reduced its shares by approximately $4.1 million. These bearish behaviors are intriguing, to say the least, since the overall interest of hedge funds fell through the 10 budget in the first quarter.

Now let’s take a look at hedge fund activity in other stocks, not necessarily in the same sector as Cars.com Inc. (NYSE: CARS) but at the same price. We will read about HBT Financial, Inc. (NASDAQ: HBT), TherapeuticsTM Inc (NASDAQ: TXMD), Pivotal Investment Corporation II (NYSE: PIC) and Oportun Financial Corporation (NASDAQ: OPRT). The market prices of this share organization are at the market price of CARS.

[table] Teletype, HF Nb with positions, Total HF positions (x1000), HBT HF position change, 7.7919, -3 TXMD, 9.19669, -9 PIC, 12.56180, -3 OPRT, 8.3142.4 Average, 9.21728, -2.75 [table]

See the table here if you have formatting issues.

As you can see, those inventories had an average of nine hedging budgets with bullish positions and the average amount invested in the inventories of $22 million. This figure is $68 million for CARS. Pivotal Investment Corporation II (NYSE: PIC) is the most popular inventory in this table. On the other hand, HBT Financial, Inc. (NASDAQ: HBT) is the least popular with only 7 bullish hedge fund positions. Compared to those inventories, Cars.com Inc. (NYSE: CARS) is more popular among hedging budgets. Our calculations showed that the top 10 popular inventories among the hedging budget recorded a 41.4% decline in 201nine and surpassed the S-P 500 ETF (SPY) by 10.1 percentage points. These inventories yielded 12.3% in 2020 until June 30, and they still controlled to beat the market spot with 15.5 percentage points. The hedging budget also hit CARS, with inventory operating 34% in the quarter and outperforming the place of market reception across an even larger margin. Obviously, the hedging budget was adequate to accumulate in this inventory compared to other inventories with a market capitalization and similar market place.

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Disclosure: None. This article was originally published on Insider Monkey.

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