Hedge funds abandon Celanese Corporation (CE)


At Insider Monkey, we’ve reviewed 867 13F files that hedge funds and leading investors are required to file by the SEC. The 13F documents show the portfolio positions of funds and investors as of September 30. In this article, we take a look at what these funds think of Celanese Corporation (NYSE:THIS) on the basis of this data.

Celanese Corporation (NYSE:THIS) was in 26 hedge fund portfolios at the end of the third quarter of 2021. The all-time high for this statistic is 37. CE investors should be aware of a decline in hedge fund sentiment in recent months. There were 37 hedge funds in our database with CE holdings at the end of June. Our calculations also showed that CE is not one of the 30 most popular stocks among hedge funds (click for Q3 ranking).

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium prices have more than doubled over the past year, so we’re reviewing listings like the 10 best EV stocks to choose the next Tesla which will offer a 10x return. 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 take a look at the latest hedge fund action regarding Celanese Corporation (NYSE:THIS).

Thomas Claugus of GMT Capital

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

At the end of September, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this security, a change of -30% compared to the second quarter of 2021. By comparison, 26 hedge funds held shares or options in bullish purchase. in CE a year ago. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.

More precisely, Holocene advisers was the largest shareholder of Celanese Corporation (NYSE: CE), with a stake valued at $ 227.6 million reported at the end of September. Trailing Holocene Advisors was GMT Capital, which raised a stake valued at $ 201.2 million. Millennium Management, Citadel Investment Group and AQR Capital Management were also very fond of the stock, becoming one of the major hedge fund holders in the company. In terms of portfolio weights assigned to each position GMT Capital assigned the greatest weight to Celanese Corporation (NYSE: CE), approximately 17.75% of its 13F portfolio. Holocene Advisors is also relatively very bullish on the stock, distributing 1.24% of its 13F equity portfolio to CE.

Given that Celanese Corporation (NYSE: CE) has seen a decline in interest from the hedge fund industry, it is easy to see that there were a few hedgies that were completely abandoning their positions prior to the fourth quarter. Interestingly, John Overdeck and David Siegel Two Sigma advisers cut most of the “top crust” of funds tracked by Insider Monkey, comprising about $ 23.2 million in stocks. Renaissance technologies, also reduced its inventory, worth about $ 20.5 million. These transactions are intriguing to say the least, as total hedge fund interest fell by 11 funds as the fourth quarter approached.

Let’s look at hedge fund activity in other stocks – not necessarily in the same industry as Celanese Corporation (NYSE: CE) but of similar value. We’ll take a look at Bath & Body Works Inc. (NYSE:BBWI), Full Truck Alliance Co. Ltd. (NYSE:AMM), Brookfield Infrastructure Partners LP (NYSE:BEEP), Liberty Global plc (NASDAQ:LBTYA), Signature Bank (NASDAQ:SBNY), PPD, Inc. (NASDAQ:PPD) and EXACT Sciences Corporation (NASDAQ:EXAS). All market capitalizations of these stocks correspond to the market capitalization of CE.

[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position BBWI, 56.6556642,3 YMM, 13.263866, -7 BIP, 15.104470, -1 LBTYA, 34.791291, 4 SBNY, 46.950619.3 PPD, 37.1890261.0 EXAS, 40.1984372.5 Medium, 34.4.1791646.1 [/table]

See the table here if you have formatting problems.

As you can see, these stocks had an average of 34.4 hedge funds with bullish positions and the average amount invested in these stocks was $ 1,792 million. That figure was $ 735 million in the case of CE. Bath & Body Works Inc. (NYSE:BBWI) is the most popular action in this table. On the other hand, Full Truck Alliance Co. Ltd. (NYSE:AMM) is the least popular with only 13 bullish hedge fund positions. Celanese Corporation (NYSE: CE) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for CE is 30.2. 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 negative signal and we prefer to spend our time researching the stocks that hedge funds are accumulating on. Our calculations have shown that top 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 again topped the market by 5.1 percentage points. Unfortunately, CE was not as popular as these 5 stocks (hedge fund sentiment was rather bearish); CE investors were disappointed as the stock has returned 5.7% since the end of September (through 9/12) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market in 2021.

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


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