Hedge Funds Are Piling Into PROCEPT BioRobotics Corporation (PRCT)

Many prominent investors, including Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious regarding the current bull market and missed out as the stock market reached another high in recent weeks. On the other hand, technology hedge funds weren’t timid and registered double digit market beating gains. Financials, energy and industrial stocks initially suffered the most but many of these stocks delivered strong returns since November and hedge funds actually increased their positions in these stocks. In this article we will find out how hedge fund sentiment towards PROCEPT BioRobotics Corporation (NASDAQ:PRCT) changed recently.

Is PROCEPT BioRobotics Corporation (NASDAQ:PRCT) a marvelous investment now? The smart money was getting more optimistic. The number of bullish hedge fund bets advanced by 21 in recent months. PROCEPT BioRobotics Corporation (NASDAQ:PRCT) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that PRCT isn’t among the 30 most popular stocks among hedge funds (click for Q2 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 take a glance at the latest hedge fund action surrounding PROCEPT BioRobotics Corporation (NASDAQ:PRCT).

Andreas Halvorsen

Andreas Halvorsen of Viking Global

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

At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21 from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in PRCT a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to Insider Monkey’s hedge fund database, Andreas Halvorsen’s Viking Global has the biggest position in PROCEPT BioRobotics Corporation (NASDAQ:PRCT) , worth close to $187.2 million, amounting to 0.5% of its total 13F portfolio. On Viking Global’s heels is Joseph Edelman of Perceptive Advisors, with a $63.2 million position; 0.9% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors with similar optimism encompass Stanley Druckenmiller’s Duquesne Capital, Zach Schreiber’s Point State Capital and Efrem Kamen’s Pura Vida Investments. In terms of the portfolio weights assigned to each position Perceptive Advisors allocated the biggest weight to PROCEPT BioRobotics Corporation (NASDAQ:PRCT) , around 0.92% of its 13F portfolio. Duquesne Capital is also relatively very bullish on the stock, earmarking 0.74 percent of its 13F equity portfolio to PRCT.

As one would reasonably expect, key hedge funds have been driving this bullishness. Viking Global, managed by Andreas Halvorsen, assembled the largest position in PROCEPT BioRobotics Corporation (NASDAQ:PRCT) . Viking Global had $187.2 million invested in the company at the end of the quarter. Joseph Edelman’s Perceptive Advisors also initiated a $63.2 million position during the quarter. The other funds with brand new PRCT positions are Stanley Druckenmiller’s Duquesne Capital, Zach Schreiber’s Point State Capital, and Efrem Kamen’s Pura Vida Investments.

Let’s check out hedge fund activity in other stocks similar to PROCEPT BioRobotics Corporation (NASDAQ:PRCT) . These stocks are HudBay Minerals Inc (NYSE:HBM), B. Riley Financial, Inc. (NASDAQ:RILY), Noble Corporation (NYSE:NE), Ferroglobe PLC (NASDAQ:GSM), NGM Biopharmaceuticals, Inc. (NASDAQ:NGM), Immunocore Holdings plc (NASDAQ:IMCR), and Sculptor Capital Management, Inc. (NYSE:SCU). This group of stocks’ market valuations are closest to PRCT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HBM 13 260603 1
RILY 24 109582 0
NE 20 474543 6
GSM 24 307425 5
NGM 22 202553 3
IMCR 11 226764 0
SCU 15 84627 -4
Average 18.4 238014 1.6

View table here if you experience formatting issues.

As you can see these stocks had an average of 18.4 hedge funds with bullish positions and the average amount invested in these stocks was $238 million. That figure was $314 million in PRCT’s case. B. Riley Financial, Inc. (NASDAQ:RILY) is the most popular stock in this table. On the other hand Immunocore Holdings plc (NASDAQ:IMCR) is the least popular one with only 11 bullish hedge fund positions. PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PRCT is 71.5. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately PRCT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PRCT were disappointed as the stock returned -34.4% since the end of September (through 12/31) 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.