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Inogen Inc (INGN): Why is Smart Money Unloading This Stock?

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The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Inogen Inc (NASDAQ:INGN) from the perspective of those successful funds.

Inogen Inc (NASDAQ:INGN) was in 10 hedge funds’ portfolios at the end of September. INGN has experienced a decrease in enthusiasm from smart money in recent months. There were 15 hedge funds in our database with INGN holdings at the end of the previous quarter. At the end of this article we will also compare INGN to other stocks including Teekay LNG Partners L.P. (NYSE:TGP), Golar LNG Partners LP (NASDAQ:GMLP), and Air Methods Corp (NASDAQ:AIRM) to get a better sense of its popularity.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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How have hedgies been trading Inogen Inc (NASDAQ:INGN)?

At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a 33% fall from the second quarter of 2016. By comparison, 19 hedge funds held shares or bullish call options in INGN heading into this year, which has since fallen by nearly 50%. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

HedgeFundSentimentChart

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Steve Cohen of Point72 Asset Management holds the most valuable position in Inogen Inc (NASDAQ:INGN) which has a $15.5 million position in the stock. Sitting at the No. 2 spot is Richard Driehaus’ Driehaus Capital which holds a $13 million position. Remaining professional money managers that are bullish encompass Jim Simons’ Renaissance Technologies, one of the largest hedge funds in the world, Columbus Circle Investors, and Chuck Royce’s Royce & Associates. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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