Do Hedge Funds Love Clean Harbors Inc (CLH)?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 866 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Clean Harbors Inc (NYSE:CLH).

Clean Harbors Inc (NYSE:CLH) investors should be aware of an increase in hedge fund sentiment recently. Clean Harbors Inc (NYSE:CLH) was in 27 hedge funds’ portfolios at the end of March. The all time high for this statistic is 28. Our calculations also showed that CLH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

To the average investor there are a multitude of metrics market participants can use to grade stocks. A pair of the most innovative metrics are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the top investment managers can trounce the S&P 500 by a healthy margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Andrew Sandler of Sandler Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a glance at the latest hedge fund action surrounding Clean Harbors Inc (NYSE:CLH).

Do Hedge Funds Think CLH Is A Good Stock To Buy Now?

Heading into the second quarter of 2021, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 23% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards CLH over the last 23 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is CLH A Good Stock To Buy?

The largest stake in Clean Harbors Inc (NYSE:CLH) was held by Impax Asset Management, which reported holding $113.7 million worth of stock at the end of December. It was followed by Marshall Wace LLP with a $72.8 million position. Other investors bullish on the company included Renaissance Technologies, 12th Street Asset Management, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position 12th Street Asset Management allocated the biggest weight to Clean Harbors Inc (NYSE:CLH), around 6.77% of its 13F portfolio. Sandler Capital Management is also relatively very bullish on the stock, earmarking 1.4 percent of its 13F equity portfolio to CLH.

Consequently, key hedge funds have jumped into Clean Harbors Inc (NYSE:CLH) headfirst. Sandler Capital Management, managed by Andrew Sandler, assembled the most outsized position in Clean Harbors Inc (NYSE:CLH). Sandler Capital Management had $16.4 million invested in the company at the end of the quarter. Till Bechtolsheimer’s Arosa Capital Management also initiated a $4.2 million position during the quarter. The other funds with brand new CLH positions are Louis Bacon’s Moore Global Investments, Dmitry Balyasny’s Balyasny Asset Management, and Qing Li’s Sciencast Management.

Let’s now take a look at hedge fund activity in other stocks similar to Clean Harbors Inc (NYSE:CLH). These stocks are Select Medical Holdings Corporation (NYSE:SEM), frontdoor, inc. (NASDAQ:FTDR), HUYA Inc. (NYSE:HUYA), China Biologic Products Holdings Inc (NASDAQ:CBPO), Houlihan Lokey Inc (NYSE:HLI), Leslie’s, Inc. (NASDAQ:LESL), and Kornit Digital Ltd. (NASDAQ:KRNT). This group of stocks’ market caps are closest to CLH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SEM 22 179000 7
FTDR 36 763384 -1
HUYA 13 335848 1
CBPO 15 1001472 -1
HLI 16 125689 -10
LESL 27 285809 5
KRNT 24 153853 9
Average 21.9 406436 1.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 21.9 hedge funds with bullish positions and the average amount invested in these stocks was $406 million. That figure was $384 million in CLH’s case. frontdoor, inc. (NASDAQ:FTDR) is the most popular stock in this table. On the other hand HUYA Inc. (NYSE:HUYA) is the least popular one with only 13 bullish hedge fund positions. Clean Harbors Inc (NYSE:CLH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CLH is 69.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and beat the market again by 6.7 percentage points. Unfortunately CLH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CLH were disappointed as the stock returned 10.1% since the end of March (through 7/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.