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Hedge Funds Are Selling ABIOMED, Inc. (ABMD) But Worry Not, Sentiment Remains Strong

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The market has been volatile due to elections and the potential of another Federal Reserve rate increase. Small cap stocks have been on a tear, as the Russell 2000 ETF (IWM) has outperformed the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of June. SEC filings and hedge fund investor letters indicate that the smart money seems to be getting back in stocks, and the funds’ movements is one of the reasons why small-cap stocks are red hot. In this article, we analyze what the smart money thinks of ABIOMED, Inc. (NASDAQ:ABMD) and find out how it is affected by hedge funds’ moves.

Is ABIOMED, Inc. (NASDAQ:ABMD) undervalued? Prominent investors are in a bearish mood. The number of bullish hedge fund positions fell by 5 recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Williams-Sonoma, Inc. (NYSE:WSM), Tahoe Resources Inc (NYSE:TAHO), and Tesoro Logistics LP (NYSE:TLLP) to gather more data points.

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What does the smart money think about ABIOMED, Inc. (NASDAQ:ABMD)?

At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a 17% decline from the second quarter of 2016, dropping ownership back to where it was two quarters earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
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According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, William Leland Edwards’s Palo Alto Investors has the number one position in ABIOMED, Inc. (NASDAQ:ABMD), worth close to $242.3 million, corresponding to 14.1% of its total 13F portfolio. Coming in second is Renaissance Technologies, led by Jim Simons, holding an $84.9 million position. Remaining peers that are bullish consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, D E Shaw, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.

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