We have processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites.

However, in this article we will take a look at their collective moves over the last six years and analyze what the smart money seems to think of Revolve Group, Inc. (RVLV) based on that data.

So, is RVLV a good stock to buy? Money managers were getting more optimistic. The number of bullish hedge fund positions increased by 3 lately. Revolve Group, Inc. was in 25 hedge funds’ portfolios at the end of September. The all-time high for this statistic is 29.

Our calculations also showed that RVLV isn’t among the 30 most popular stocks among hedge funds. There were 22 hedge funds in our database with RVLV holdings at the end of June. Let’s take a look at the fresh hedge fund action surrounding Revolve Group, Inc.

Do Hedge Funds Think RVLV is a Good Stock to Buy Now?

At the end of the third quarter, a total of 25 of the hedge funds held long positions in this stock, which is a change of 14% from the previous quarter. By comparison, 21 hedge funds held shares or bullish call options in RVLV a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Of the funds tracked, Renaissance Technologies has the biggest position in Revolve Group, Inc., worth close to $53.8 million, amounting to 0.1% of its total 13F portfolio. The second largest stake is held by John Overdeck and David Siegel of Two Sigma Advisors, with a $33.7 million position. The fund has 0.1% of its 13F portfolio invested in the stock.

Remaining professional money managers that are bullish include Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw  Co., and Ian Wace’s Marshall Wace LLP.

In terms of the portfolio weights assigned to each position, Kamunting Street Capital allocated the biggest weight to Revolve Group, Inc., around 1.38% of its 13F portfolio. Wallace Capital Management is also relatively very bullish on the stock, setting aside 0.51% of its 13F equity portfolio to RVLV.

Consequently, key hedge funds have been driving this bullishness. Balyasny Asset Management, managed by Dmitry Balyasny, created the biggest position in Revolve Group, Inc. Balyasny Asset Management had $9.6 million invested in the company at the end of the quarter.

Israel Englander’s Millennium Management also initiated a $5.3 million position during the quarter. The following funds were also among the new RVLV investors: Ken Fisher’s Fisher Asset Management, Donald Sussman’s Paloma Partners, and Peter Algert’s Algert Global.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Revolve Group, Inc., but similarly valued.

These stocks are Air Lease Corp (AL), Madison Square Garden Sports Corp. (MSGS), DT Midstream Inc. (DTM), John Bean Technologies Corporation (JBT), Hawaiian Electric Industries, Inc. (HE), Sprinklr Inc. (CXM), and MACOM Technology Solutions Holdings Inc (MTSI). All of the market caps of these stocks resemble RVLV’s market cap.

View table here if you experience formatting issues.

As you can see, these stocks had an average of 19.6 hedge funds with bullish positions. The average amount invested in these stocks was $368 million. That figure was $230 million in RVLV’s case.

Madison Square Garden Sports Corp. is the most popular stock in this table. On the other hand, Sprinklr Inc. is the least popular one, with only 11 bullish hedge fund positions. Revolve Group, Inc. is not the most popular stock in this group, but its hedge fund interest is still above average.

Our overall hedge fund sentiment score for RVLV is 63. Stocks with 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’d rather spend our time researching stocks that hedge funds are piling on.

Our calculations showed that 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 Dec. 9 and beat the market again by 5.1 percentage points.

Unfortunately, RVLV wasn’t nearly as popular as those stocks, and hedge funds that were betting on RVLV were disappointed as the stock returned 7.5% since the end of September (through Sept. 12) and underperformed the market.