In this article you are going to find out whether hedge funds think 1Life Healthcare, Inc. (NASDAQ:ONEM) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
1Life Healthcare, Inc. (NASDAQ:ONEM) was in 34 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 33. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. ONEM investors should be aware of an increase in activity from the world’s largest hedge funds recently. There were 33 hedge funds in our database with ONEM holdings at the end of June. Our calculations also showed that ONEM 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. Now let’s check out the latest hedge fund action surrounding 1Life Healthcare, Inc. (NASDAQ:ONEM).
Do Hedge Funds Think ONEM Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of 3% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ONEM over the last 25 quarters. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
More specifically, Tiger Global Management LLC was the largest shareholder of 1Life Healthcare, Inc. (NASDAQ:ONEM), with a stake worth $217.3 million reported as of the end of September. Trailing Tiger Global Management LLC was Maverick Capital, which amassed a stake valued at $74.1 million. ARK Investment Management, Cadian 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 Sabrepoint Capital allocated the biggest weight to 1Life Healthcare, Inc. (NASDAQ:ONEM), around 4.52% of its 13F portfolio. Cadian Capital is also relatively very bullish on the stock, dishing out 2.74 percent of its 13F equity portfolio to ONEM.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Cadian Capital, managed by Eric Bannasch, established the biggest position in 1Life Healthcare, Inc. (NASDAQ:ONEM). Cadian Capital had $72.5 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $15.3 million investment in the stock during the quarter. The other funds with brand new ONEM positions are Joseph Samuels’s Islet Management, Frank Fu’s CaaS Capital, and George Baxter’s Sabrepoint Capital.
Let’s now take a look at hedge fund activity in other stocks similar to 1Life Healthcare, Inc. (NASDAQ:ONEM). We will take a look at VIZIO Holding Corp. (NYSE:VZIO), Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI), Pacific Premier Bancorp, Inc. (NASDAQ:PPBI), SunPower Corporation (NASDAQ:SPWR), VTEX (NYSE:VTEX), JBG SMITH Properties (NYSE:JBGS), and Adient plc (NYSE:ADNT). All of these stocks’ market caps resemble ONEM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VZIO | 19 | 119781 | 0 |
| OLLI | 18 | 108528 | -3 |
| PPBI | 14 | 144734 | 2 |
| SPWR | 22 | 177942 | -3 |
| VTEX | 14 | 468063 | 14 |
| JBGS | 15 | 288239 | -2 |
| ADNT | 29 | 494305 | -6 |
| Average | 18.7 | 257370 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.7 hedge funds with bullish positions and the average amount invested in these stocks was $257 million. That figure was $640 million in ONEM’s case. Adient plc (NYSE:ADNT) is the most popular stock in this table. On the other hand Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks 1Life Healthcare, Inc. (NASDAQ:ONEM) is more popular among hedge funds. Our overall hedge fund sentiment score for ONEM is 86. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately ONEM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ONEM were disappointed as the stock returned -21.3% since the end of the third quarter (through 11/30) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
