Hedge Funds Are Dumping Immunovant, Inc. (IMVT)

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 June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Immunovant, Inc. (NASDAQ:IMVT).

Immunovant, Inc. (NASDAQ:IMVT) shareholders have witnessed a decrease in hedge fund sentiment in recent months. Immunovant, Inc. (NASDAQ:IMVT) was in 21 hedge funds’ portfolios at the end of June. The all time high for this statistic is 36. There were 26 hedge funds in our database with IMVT holdings at the end of March. Our calculations also showed that IMVT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

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

At the end of the second quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of -19% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards IMVT over the last 24 quarters. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

The largest stake in Immunovant, Inc. (NASDAQ:IMVT) was held by Woodline Partners, which reported holding $39.6 million worth of stock at the end of June. It was followed by Biotechnology Value Fund / BVF Inc with a $13.5 million position. Other investors bullish on the company included Mangrove Partners, Citadel Investment Group, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position One Fin Capital Management allocated the biggest weight to Immunovant, Inc. (NASDAQ:IMVT), around 2.56% of its 13F portfolio. Mangrove Partners is also relatively very bullish on the stock, designating 1.1 percent of its 13F equity portfolio to IMVT.

Since Immunovant, Inc. (NASDAQ:IMVT) has experienced bearish sentiment from hedge fund managers, it’s safe to say that there were a few hedgies who were dropping their full holdings last quarter. It’s worth mentioning that James A. Silverman’s Opaleye Management sold off the biggest stake of all the hedgies monitored by Insider Monkey, worth close to $7.5 million in stock. Anand Parekh’s fund, Alyeska Investment Group, also cut its stock, about $6.1 million worth. These transactions are important to note, as total hedge fund interest fell by 5 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Immunovant, Inc. (NASDAQ:IMVT) but similarly valued. These stocks are Ferroglobe PLC (NASDAQ:GSM), AngioDynamics, Inc. (NASDAQ:ANGO), TPG RE Finance Trust, Inc. (NYSE:TRTX), SI-BONE, Inc. (NASDAQ:SIBN), So-Young International Inc. (NASDAQ:SY), Fortuna Silver Mines Inc. (NYSE:FSM), and OneSpan Inc. (NASDAQ:OSPN). This group of stocks’ market valuations are similar to IMVT’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.4 hedge funds with bullish positions and the average amount invested in these stocks was $104 million. That figure was $99 million in IMVT’s case. SI-BONE, Inc. (NASDAQ:SIBN) is the most popular stock in this table. On the other hand So-Young International Inc. (NASDAQ:SY) is the least popular one with only 5 bullish hedge fund positions. Immunovant, Inc. (NASDAQ:IMVT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for IMVT is 52.3. 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 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately IMVT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on IMVT were disappointed as the stock returned -21.5% since the end of June (through 10/22) 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.

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