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).
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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).
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|
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.