A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX).
Is Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) ready to rally soon? The best stock pickers were turning bullish. The number of bullish hedge fund bets advanced by 9 recently. Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) was in 30 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that OCDX 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. Keeping this in mind we’re going to go over the key hedge fund action regarding Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX).
Kamran Moghtaderi of Eversept Partners
Do Hedge Funds Think OCDX Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 30 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from the previous quarter. The graph below displays the number of hedge funds with bullish position in OCDX over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Alyeska Investment Group held the most valuable stake in Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX), which was worth $56 million at the end of the third quarter. On the second spot was Armistice Capital which amassed $42.5 million worth of shares. Balyasny Asset Management, Sectoral Asset Management, and Eversept Partners 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 Sectoral Asset Management allocated the biggest weight to Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX), around 1.72% of its 13F portfolio. Pinz Capital is also relatively very bullish on the stock, designating 1.51 percent of its 13F equity portfolio to OCDX.
As aggregate interest increased, specific money managers were breaking ground themselves. Islet Management, managed by Joseph Samuels, established the biggest position in Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX). Islet Management had $11.2 million invested in the company at the end of the quarter. Efrem Kamen’s Pura Vida Investments also initiated a $10.2 million position during the quarter. The following funds were also among the new OCDX investors: Alec Litowitz and Ross Laser’s Magnetar Capital, Matthew L Pinz’s Pinz Capital, and Frank Fu’s CaaS Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) but similarly valued. We will take a look at Fisker Inc. (NYSE:FSR), Qualys Inc (NASDAQ:QLYS), Healthcare Realty Trust Inc (NYSE:HR), Arvinas, Inc. (NASDAQ:ARVN), Murphy USA Inc. (NYSE:MUSA), PS Business Parks Inc (NYSE:PSB), and Enstar Group Ltd. (NASDAQ:ESGR). All of these stocks’ market caps match OCDX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FSR | 15 | 228103 | -1 |
| QLYS | 18 | 220919 | -2 |
| HR | 18 | 210905 | -1 |
| ARVN | 25 | 312887 | -1 |
| MUSA | 17 | 311081 | -9 |
| PSB | 12 | 103720 | -4 |
| ESGR | 14 | 34764 | 3 |
| Average | 17 | 203197 | -2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $203 million. That figure was $273 million in OCDX’s case. Arvinas, Inc. (NASDAQ:ARVN) is the most popular stock in this table. On the other hand PS Business Parks Inc (NYSE:PSB) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Ortho Clinical Diagnostics Holdings plc (NASDAQ:OCDX) is more popular among hedge funds. Our overall hedge fund sentiment score for OCDX is 90. 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 OCDX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on OCDX were disappointed as the stock returned 3.6% 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.
