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Hedge Funds Are Betting On Hologic, Inc. (HOLX)

The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Hologic, Inc. (NASDAQ:HOLX).

Hologic, Inc. (NASDAQ:HOLX) shareholders have witnessed an increase in hedge fund sentiment in recent months. At the end of this article we will also compare HOLX to other stocks including Mosaic Co (NYSE:MOS), Church & Dwight Co., Inc. (NYSE:CHD), and XL Group plc (NYSE:XL) to get a better sense of its popularity.

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Today there is a multitude of formulas shareholders have at their disposal to size up publicly traded companies. A couple of the most underrated formulas are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the best picks of the elite investment managers can beat their index-focused peers by a solid amount (see the details here).

Now, we’re going to take a peek at the fresh action regarding Hologic, Inc. (NASDAQ:HOLX).

Hedge fund activity in Hologic, Inc. (NASDAQ:HOLX)

Heading into Q4, a total of 38 of the hedge funds tracked by Insider Monkey were long this stock, a change of 23% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Icahn Capital LP, managed by Carl Icahn, holds the largest position in Hologic, Inc. (NASDAQ:HOLX). Icahn Capital LP has an $1.1017 billion position in the stock, comprising 4% of its 13F portfolio. On Icahn Capital LP’s heels is Ralph V. Whitworth of Relational Investors, with an $290.3 million position; 34.5% of its 13F portfolio is allocated to the stock. Remaining professional money managers that are bullish consist of Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors.

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. PDT Partners, managed by Peter Muller, created the largest position in Hologic, Inc. (NASDAQ:HOLX). PDT Partners had $22.8 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also initiated an $22 million position during the quarter. The following funds were also among the new HOLX investors: Clifford Fox’s Columbus Circle Investors, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, and Steve Cohen’s Point72 Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Hologic, Inc. (NASDAQ:HOLX) but similarly valued. We will take a look at Mosaic Co (NYSE:MOS), Church & Dwight Co., Inc. (NYSE:CHD), XL Group plc (NYSE:XL), and Xilinx, Inc. (NASDAQ:XLNX). This group of stocks’ market caps match HOLX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MOS 39 505581 -8
CHD 18 294634 -4
XL 37 913532 8
XLNX 23 1200643 -2

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $729 million. That figure was $2035 million in HOLX’s case. Mosaic Co (NYSE:MOS) is the most popular stock in this table. On the other hand Church & Dwight Co., Inc. (NYSE:CHD) is the least popular one with only 18 bullish hedge fund positions. In comparison, Hologic, Inc. (NASDAQ:HOLX), with 38 bullish hedge fund positions, is not the most popular stock in this group but still it has attracted attention from investors. Although this may indicate it a good buying opportunity, we’d rather spend our time focusing on stocks that hedge funds are collectively most bullish on, such as MOS, in this particular case, which might represent a better candidate to consider a long position.

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