Hedge Funds Are Betting On Halozyme Therapeutics, Inc. (HALO)

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Halozyme Therapeutics, Inc. (NASDAQ:HALO) based on that data.

Halozyme Therapeutics, Inc. (NASDAQ:HALO) shareholders have witnessed an increase in hedge fund interest lately. Halozyme Therapeutics, Inc. (NASDAQ:HALO) was in 23 hedge funds’ portfolios at the end of September. The all time high for this statistic is 26. Our calculations also showed that HALO isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. With all of this in mind let’s analyze the fresh hedge fund action encompassing Halozyme Therapeutics, Inc. (NASDAQ:HALO).

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

At third quarter’s end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 15% from the second quarter of 2021. On the other hand, there were a total of 26 hedge funds with a bullish position in HALO a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is HALO A Good Stock To Buy?

More specifically, Fisher Asset Management was the largest shareholder of Halozyme Therapeutics, Inc. (NASDAQ:HALO), with a stake worth $40.9 million reported as of the end of September. Trailing Fisher Asset Management was Driehaus Capital, which amassed a stake valued at $33.8 million. Healthcor Management LP, Arrowstreet Capital, and Two Sigma Advisors 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 SilverArc Capital allocated the biggest weight to Halozyme Therapeutics, Inc. (NASDAQ:HALO), around 1.38% of its 13F portfolio. Healthcor Management LP is also relatively very bullish on the stock, designating 0.87 percent of its 13F equity portfolio to HALO.

Consequently, some big names were breaking ground themselves. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the largest position in Halozyme Therapeutics, Inc. (NASDAQ:HALO). Arrowstreet Capital had $16.9 million invested in the company at the end of the quarter.  Renaissance Technologies also initiated a $6.2 million position during the quarter. The other funds with brand new HALO positions are Peter Muller’s PDT Partners, Peter Algert’s Algert Global, and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s check out hedge fund activity in other stocks similar to Halozyme Therapeutics, Inc. (NASDAQ:HALO). We will take a look at SPS Commerce, Inc. (NASDAQ:SPSC), Nextera Energy Partners LP (NYSE:NEP), Beam Therapeutics Inc. (NASDAQ:BEAM), Upwork Inc. (NASDAQ:UPWK), New Fortress Energy LLC (NASDAQ:NFE), Reynolds Consumer Products Inc. (NASDAQ:REYN), and Acadia Healthcare Company Inc (NASDAQ:ACHC). This group of stocks’ market caps are closest to HALO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPSC 17 178577 -3
NEP 13 144605 -9
BEAM 20 1244424 -1
UPWK 35 418062 9
NFE 10 37286 1
REYN 12 97844 -2
ACHC 29 572319 -3
Average 19.4 384731 -1.1

View table here if you experience formatting issues.

As you can see these stocks had an average of 19.4 hedge funds with bullish positions and the average amount invested in these stocks was $385 million. That figure was $180 million in HALO’s case. Upwork Inc. (NASDAQ:UPWK) is the most popular stock in this table. On the other hand New Fortress Energy LLC (NASDAQ:NFE) is the least popular one with only 10 bullish hedge fund positions. Halozyme Therapeutics, Inc. (NASDAQ:HALO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HALO is 60.5. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately HALO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HALO were disappointed as the stock returned -21.8% since the end of September (through 12/9) 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.