Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Integra Lifesciences Holdings Corp (NASDAQ:IART) from the perspective of those elite funds.
Integra Lifesciences Holdings Corp (NASDAQ:IART) shareholders have witnessed an increase in enthusiasm from smart money of late, with a net total of 3 more hedge funds owning the company’s shares. 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 Urban Edge Properties (NYSE:UE), CLARCOR Inc. (NYSE:CLC), and PolyOne Corporation (NYSE:POL) to gather more data points.
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.
How have hedgies been trading Integra Lifesciences Holdings Corp (NASDAQ:IART)?
At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 19% burst from the previous quarter, pushing it back to its yearly high after a few down quarters. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Integra Lifesciences Holdings Corp (NASDAQ:IART). Fisher Asset Management has a $43.5 million position in the stock. Sitting at the No. 2 spot is Principal Global Investors of Columbus Circle Investors, with a $25.7 million position. Other hedge funds and institutional investors with similar optimism contain Phill Gross and Robert Atchinson’s Adage Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Steve Cohen’s Point72 Asset Management.
As industry-wide interest jumped, key money managers have been driving this bullishness. Point72 Asset Management established the most valuable call position in Integra Lifesciences Holdings Corp (NASDAQ:IART). Point72 Asset Management had $8.3 million invested in the company at the end of the quarter. Krishen Sud’s Sivik Global Healthcare also made a $3.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Mike Vranos’ Ellington, Paul Tudor Jones’ Tudor Investment Corp, and Glenn Russell Dubin’s Highbridge Capital Management.
Let’s also examine hedge fund activity in other stocks similar to Integra Lifesciences Holdings Corp (NASDAQ:IART). These stocks are Urban Edge Properties (NYSE:UE), CLARCOR Inc. (NYSE:CLC), PolyOne Corporation (NYSE:POL), and Bank of Hawaii Corporation (NYSE:BOH). This group of stocks’ market valuations resemble IART’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $133 million in IART’s case. PolyOne Corporation (NYSE:POL) is the most popular stock in this table. On the other hand Urban Edge Properties (NYSE:UE) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Integra Lifesciences Holdings Corp (NASDAQ:IART) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.