A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on SailPoint Technologies Holdings, Inc. (NYSE:SAIL).
SailPoint Technologies Holdings, Inc. (NYSE:SAIL) investors should be aware of a decrease in activity from the world’s largest hedge funds of late. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) was in 29 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 32. Our calculations also showed that SAIL isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV 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. Now let’s view the new hedge fund action surrounding SailPoint Technologies Holdings, Inc. (NYSE:SAIL).
Do Hedge Funds Think SAIL Is A Good Stock To Buy Now?
At Q1’s end, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards SAIL over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, HMI Capital was the largest shareholder of SailPoint Technologies Holdings, Inc. (NYSE:SAIL), with a stake worth $299.9 million reported as of the end of March. Trailing HMI Capital was SoMa Equity Partners, which amassed a stake valued at $268.4 million. Eminence Capital, RGM Capital, and Jeneq Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Jeneq Management allocated the biggest weight to SailPoint Technologies Holdings, Inc. (NYSE:SAIL), around 10.7% of its 13F portfolio. HMI Capital is also relatively very bullish on the stock, dishing out 10.7 percent of its 13F equity portfolio to SAIL.
Seeing as SailPoint Technologies Holdings, Inc. (NYSE:SAIL) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedgies who were dropping their entire stakes last quarter. Interestingly, Brandon Haley’s Holocene Advisors said goodbye to the biggest stake of the 750 funds followed by Insider Monkey, worth an estimated $26.3 million in stock. Israel Englander’s fund, Millennium Management, also dropped its stock, about $20.6 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to SailPoint Technologies Holdings, Inc. (NYSE:SAIL). These stocks are Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), Gates Industrial Corporation plc (NYSE:GTES), Bloom Energy Corporation (NYSE:BE), FuelCell Energy, Inc. (NASDAQ:FCEL), Grupo Aeroportuario del Pacifico (NYSE:PAC), Turning Point Therapeutics, Inc. (NASDAQ:TPTX), and PennyMac Financial Services Inc (NYSE:PFSI). All of these stocks’ market caps are closest to SAIL’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
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 $499 million. That figure was $888 million in SAIL’s case. Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Pacifico (NYSE:PAC) is the least popular one with only 5 bullish hedge fund positions. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SAIL is 66.7. 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 22.8% in 2021 through July 2nd and beat the market again by 6 percentage points. Unfortunately SAIL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on SAIL were disappointed as the stock returned -0.8% since the end of March (through 7/2) 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.