Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is PerkinElmer, Inc. (NYSE:PKI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
PerkinElmer, Inc. (NYSE:PKI) was in 25 hedge funds’ portfolios at the end of the third quarter of 2015. PKI investors should pay attention to an increase in support from the world’s most elite money managers of late. There were 18 hedge funds in our database with PKI holdings at the end of the previous quarter. 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 Amtrust Financial Services, Inc. (NASDAQ:AFSI), Sirona Dental Systems, Inc. (NASDAQ:SIRO), and ITC Holdings Corp. (NYSE:ITC) to gather more data points.
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To the average investor there are tons of gauges shareholders use to appraise publicly traded companies. Two of the most useful gauges are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the top hedge fund managers can outperform the market by a superb margin (see the details here).
With all of this in mind, we’re going to take a peek at the latest action regarding PerkinElmer, Inc. (NYSE:PKI).
What does the smart money think about PerkinElmer, Inc. (NYSE:PKI)?
At Q3’s end, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 39% from one quarter earlier. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the most valuable position in PerkinElmer, Inc. (NYSE:PKI). Royce & Associates has a $91.8 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Select Equity Group, managed by Robert Joseph Caruso, which holds a $87.7 million position; 0.8% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Sandy Nairn’s Edinburgh Partners, and Ian Simm’s Impax Asset Management.
Consequently, some big names have been driving this bullishness. Columbus Circle Investors, created the largest call position in PerkinElmer, Inc. (NYSE:PKI). Columbus Circle Investors had $46 million invested in the company at the end of the quarter. Greg Poole’s Echo Street Capital Management also made a $21.4 million investment in the stock during the quarter. The other funds with brand new PKI positions are Louis Bacon’s Moore Global Investments, Vishal Saluja and Pham Quang’s Endurant Capital Management, and Phill Gross and Robert Atchinson’s Adage Capital Management.
Let’s now review hedge fund activity in other stocks similar to PerkinElmer, Inc. (NYSE:PKI). We will take a look at Amtrust Financial Services, Inc. (NASDAQ:AFSI), Sirona Dental Systems, Inc. (NASDAQ:SIRO), ITC Holdings Corp. (NYSE:ITC), and Forest City Enterprises, Inc. (NYSE:FCE). All of these stocks’ market caps are closest to PKI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AFSI | 20 | 108689 | 0 |
| SIRO | 19 | 697429 | 6 |
| ITC | 16 | 341245 | -3 |
| FCE | 37 | 1574082 | -1 |
As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $680 million. That figure was $476 million in PKI’s case. Forest City Enterprises, Inc. (NYSE:FCE) is the most popular stock in this table. On the other hand ITC Holdings Corp. (NYSE:ITC) is the least popular one with only 16 bullish hedge fund positions. PerkinElmer, Inc. (NYSE:PKI) is not the most popular stock in this group but hedge fund interest is still above average. This is a positive signal that makes the stock worth a closer look.
