Published on 26 Oct 2021 on Insider Monkey via Yahoo Finance

Hedge Funds Are Selling Janus International Group Inc (JBI)

Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Janus International Group Inc (NYSE:JBI).

Janus International Group Inc (NYSE:JBI) shareholders have witnessed a decrease in activity from the world's largest hedge funds of late. Janus International Group Inc (NYSE:JBI) was in 23 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 27. There were 27 hedge funds in our database with JBI holdings at the end of March. Our calculations also showed that JBI isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.