Published on 18 Oct 2021 on Insider Monkey via Yahoo Finance

Hedge Funds Are Crazy About Everi Holdings Inc (EVRI)

How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Everi Holdings Inc (NYSE:EVRI).

Everi Holdings Inc (NYSE:EVRI) was in 31 hedge funds' portfolios at the end of June. The all time high for this statistic was previously 30. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. EVRI investors should pay attention to an increase in enthusiasm from smart money recently. There were 24 hedge funds in our database with EVRI positions at the end of the first quarter. Our calculations also showed that EVRI 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.