Published on 7 Feb 2022 on Insider Monkey via Yahoo Finance

Was The Smart Money Right About Brown & Brown, Inc. (BRO)?

We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do. However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, let’s examine the smart money sentiment towards Brown & Brown, Inc. (NYSE:BRO) and determine whether hedge funds skillfully traded this stock.

Brown & Brown, Inc. (NYSE:BRO) was in 31 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 31. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. BRO has seen an increase in support from the world's most elite money managers in recent months. There were 26 hedge funds in our database with BRO holdings at the end of June. Our calculations also showed that BRO isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind let's check out the recent hedge fund action surrounding Brown & Brown, Inc. (NYSE:BRO).