Hedge Funds Are Selling Syneos Health, Inc. (SYNH)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 866 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Syneos Health, Inc. (NASDAQ:SYNH).

Syneos Health, Inc. (NASDAQ:SYNH) shareholders have witnessed a decrease in hedge fund sentiment recently. Syneos Health, Inc. (NASDAQ:SYNH) was in 28 hedge funds’ portfolios at the end of March. The all time high for this statistic is 40. Our calculations also showed that SYNH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

In today’s marketplace there are many metrics stock traders have at their disposal to assess their stock investments. A couple of the most under-the-radar metrics are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the elite money managers can outclass the S&P 500 by a significant margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Rajiv Jain of GQG Partners

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, economists warn of inflation flare up. So, we are checking out this backdoor gold play that has hit peak gains of 718% in a little over a year. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to take a peek at the fresh hedge fund action encompassing Syneos Health, Inc. (NASDAQ:SYNH).

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

At the end of the first quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SYNH over the last 23 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

Is SYNH A Good Stock To Buy?

More specifically, Cardinal Capital was the largest shareholder of Syneos Health, Inc. (NASDAQ:SYNH), with a stake worth $74.1 million reported as of the end of March. Trailing Cardinal Capital was Polar Capital, which amassed a stake valued at $71.3 million. GQG Partners, Citadel Investment Group, and CaaS Capital 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 Endurant Capital Management allocated the biggest weight to Syneos Health, Inc. (NASDAQ:SYNH), around 2.09% of its 13F portfolio. Bloom Tree Partners is also relatively very bullish on the stock, designating 1.84 percent of its 13F equity portfolio to SYNH.

Judging by the fact that Syneos Health, Inc. (NASDAQ:SYNH) has faced falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who sold off their entire stakes in the first quarter. It’s worth mentioning that Arthur B Cohen and Joseph Healey’s Healthcor Management LP dumped the biggest investment of the “upper crust” of funds watched by Insider Monkey, totaling about $54 million in stock, and Michael Rockefeller and KarláKroeker’s Woodline Partners was right behind this move, as the fund said goodbye to about $33.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds in the first quarter.

Let’s also examine hedge fund activity in other stocks similar to Syneos Health, Inc. (NASDAQ:SYNH). These stocks are Federal Realty Investment Trust (NYSE:FRT), Voya Financial Inc (NYSE:VOYA), Luminar Technologies, Inc. (NASDAQ:LAZR), ITT Inc. (NYSE:ITT), Jabil Inc. (NYSE:JBL), Yatsen Holding Limited (NYSE:YSG), and Concentrix Corporation (NASDAQ:CNXC). This group of stocks’ market caps resemble SYNH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FRT 16 43276 -1
VOYA 42 1031020 -2
LAZR 12 39243 -13
ITT 18 264004 -10
JBL 24 466622 -4
YSG 20 224997 -6
CNXC 23 576745 2
Average 22.1 377987 -4.9

View table here if you experience formatting issues.

As you can see these stocks had an average of 22.1 hedge funds with bullish positions and the average amount invested in these stocks was $378 million. That figure was $460 million in SYNH’s case. Voya Financial Inc (NYSE:VOYA) is the most popular stock in this table. On the other hand Luminar Technologies, Inc. (NASDAQ:LAZR) is the least popular one with only 12 bullish hedge fund positions. Syneos Health, Inc. (NASDAQ:SYNH) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SYNH is 51.7. 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 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Hedge funds were also right about betting on SYNH as the stock returned 20% since the end of Q1 (through 7/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.