Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) based on that data.
Is Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) a buy right now? Money managers were betting on the stock. The number of bullish hedge fund positions inched up by 7 in recent months. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) was in 40 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 39. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ALNY 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 recent hedge fund action encompassing Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY).
Brad Farber of Atika Capital
Do Hedge Funds Think ALNY Is A Good Stock To Buy Now?
At Q3’s end, a total of 40 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from the second quarter of 2021. By comparison, 35 hedge funds held shares or bullish call options in ALNY a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) was held by Casdin Capital, which reported holding $188.8 million worth of stock at the end of September. It was followed by Avoro Capital Advisors (venBio Select Advisor) with a $160.5 million position. Other investors bullish on the company included Farallon Capital, Holocene Advisors, and Holocene Advisors. In terms of the portfolio weights assigned to each position Casdin Capital allocated the biggest weight to Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), around 4.7% of its 13F portfolio. Parkman Healthcare Partners is also relatively very bullish on the stock, earmarking 3.58 percent of its 13F equity portfolio to ALNY.
Now, key money managers were leading the bulls’ herd. Atika Capital, managed by Brad Farber, initiated the most outsized position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). Atika Capital had $12.1 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also made a $5.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, Zach Schreiber’s Point State Capital, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP.
Let’s now take a look at hedge fund activity in other stocks similar to Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). We will take a look at Dover Corporation (NYSE:DOV), Zillow Group Inc (NASDAQ:Z), Monolithic Power Systems, Inc. (NASDAQ:MPWR), Xylem Inc (NYSE:XYL), Hormel Foods Corporation (NYSE:HRL), Imperial Oil Limited (NYSE:IMO), and Bio-Rad Laboratories, Inc. (NYSE:BIO). This group of stocks’ market valuations match ALNY’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DOV | 32 | 351286 | 3 |
| Z | 67 | 4251493 | -9 |
| MPWR | 28 | 799034 | -6 |
| XYL | 22 | 821321 | -1 |
| HRL | 29 | 476824 | 5 |
| IMO | 10 | 99009 | -5 |
| BIO | 38 | 1442180 | -3 |
| Average | 32.3 | 1177307 | -2.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 32.3 hedge funds with bullish positions and the average amount invested in these stocks was $1177 million. That figure was $1030 million in ALNY’s case. Zillow Group Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand Imperial Oil Limited (NYSE:IMO) is the least popular one with only 10 bullish hedge fund positions. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ALNY is 66.3. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately ALNY wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ALNY were disappointed as the stock returned -2.7% since the end of September (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 many of these stocks already outperformed the market since 2019.
Follow Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY)
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Disclosure: None. This article was originally published at Insider Monkey.
