Hedge Funds Are Coming Back To Iron Mountain Incorporated (IRM)

We at Insider Monkey have gone over 873 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article, we look at what those funds think of Iron Mountain Incorporated (NYSE:IRM) based on that data.

Is Iron Mountain Incorporated (NYSE:IRM) the right investment to pursue these days? Prominent investors were taking an optimistic view. The number of long hedge fund positions went up by 9 recently. Iron Mountain Incorporated (NYSE:IRM) was in 25 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 25. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that IRM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 16 hedge funds in our database with IRM positions at the end of the first quarter.

According to most stock holders, hedge funds are seen as slow, old financial tools of yesteryear. While there are more than 8000 funds in operation today, We look at the top tier of this club, approximately 850 funds. These hedge fund managers manage the lion’s share of all hedge funds’ total capital, and by following their matchless investments, Insider Monkey has unearthed a number of investment strategies that have historically outrun the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Phill Gross Adage Capital Phillip Gross

Phillip Gross of Adage Capital

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. With all of this in mind we’re going to take a gander at the latest hedge fund action regarding Iron Mountain Incorporated (NYSE:IRM).

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

Heading into the third quarter of 2021, a total of 25 of the hedge funds tracked by Insider Monkey were long this stock, a change of 56% from one quarter earlier. By comparison, 22 hedge funds held shares or bullish call options in IRM a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).

Among these funds, PEAK6 Capital Management held the most valuable stake in Iron Mountain Incorporated (NYSE:IRM), which was worth $28.2 million at the end of the second quarter. On the second spot was Renaissance Technologies which amassed $15.8 million worth of shares. Millennium Management, Adage Capital Management, and Citadel Investment Group 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 Southport Management allocated the biggest weight to Iron Mountain Incorporated (NYSE:IRM), around 1.43% of its 13F portfolio. Maplelane Capital is also relatively very bullish on the stock, earmarking 0.29 percent of its 13F equity portfolio to IRM.

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Maplelane Capital, managed by Leon Shaulov, created the most outsized position in Iron Mountain Incorporated (NYSE:IRM). Maplelane Capital had $9 million invested in the company at the end of the quarter. Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors also made a $3.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Paul Tudor Jones’s Tudor Investment Corp, and Joel Greenblatt’s Gotham Asset Management.

Let’s go over hedge fund activity in other stocks similar to Iron Mountain Incorporated (NYSE:IRM). We will take a look at InterContinental Hotels Group PLC (NYSE:IHG), Black Knight, Inc. (NYSE:BKI), Ozon Holdings PLC (NASDAQ:OZON), Dr. Reddy’s Laboratories Limited (NYSE:RDY), Jack Henry & Associates, Inc. (NASDAQ:JKHY), Tapestry, Inc. (NYSE:TPR), and The Mosaic Company (NYSE:MOS). This group of stocks’ market values are similar to IRM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IHG 6 10475 -2
BKI 33 995228 -7
OZON 19 190660 2
RDY 11 188216 -1
JKHY 22 180204 2
TPR 41 1128944 -9
MOS 43 808943 5
Average 25 500381 -1.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $500 million. That figure was $82 million in IRM’s case. The Mosaic Company (NYSE:MOS) is the most popular stock in this table. On the other hand InterContinental Hotels Group PLC (NYSE:IHG) is the least popular one with only 6 bullish hedge fund positions. Iron Mountain Incorporated (NYSE:IRM) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for IRM is 65.7. 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. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on IRM as the stock returned 10.1% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.