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 821 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, a week after the market trough. In this article we look at what those investors think of Haemonetics Corporation (NYSE:HAE).
Haemonetics Corporation (NYSE:HAE) was in 34 hedge funds’ portfolios at the end of March. HAE investors should be aware of an increase in hedge fund interest lately. There were 33 hedge funds in our database with HAE positions at the end of the previous quarter. Our calculations also showed that HAE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To most market participants, hedge funds are viewed as slow, outdated investment vehicles of yesteryear. While there are greater than 8000 funds trading today, Our researchers choose to focus on the masters of this group, about 850 funds. These investment experts direct the lion’s share of all hedge funds’ total asset base, and by paying attention to their matchless stock picks, Insider Monkey has brought to light several investment strategies that have historically defeated the market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
Ricky Sandler of Eminence Capital
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind we’re going to take a glance at the new hedge fund action regarding Haemonetics Corporation (NYSE:HAE).
How have hedgies been trading Haemonetics Corporation (NYSE:HAE)?
At Q1’s end, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 3% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in HAE over the last 18 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).
The largest stake in Haemonetics Corporation (NYSE:HAE) was held by Renaissance Technologies, which reported holding $217.7 million worth of stock at the end of September. It was followed by Healthcor Management LP with a $143.3 million position. Other investors bullish on the company included Eminence Capital, Point72 Asset Management, and Nitorum Capital. In terms of the portfolio weights assigned to each position Healthcor Management LP allocated the biggest weight to Haemonetics Corporation (NYSE:HAE), around 6.13% of its 13F portfolio. BeaconLight Capital is also relatively very bullish on the stock, designating 5.93 percent of its 13F equity portfolio to HAE.
As aggregate interest increased, specific money managers have jumped into Haemonetics Corporation (NYSE:HAE) headfirst. Point72 Asset Management, managed by Steve Cohen, created the most outsized position in Haemonetics Corporation (NYSE:HAE). Point72 Asset Management had $45.4 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $24.9 million investment in the stock during the quarter. The following funds were also among the new HAE investors: Ed Bosek’s BeaconLight Capital, George McCabe’s Portolan Capital Management, and Minhua Zhang’s Weld Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Haemonetics Corporation (NYSE:HAE) but similarly valued. These stocks are RealPage, Inc. (NASDAQ:RP), Kinross Gold Corporation (NYSE:KGC), Pentair plc (NYSE:PNR), and Morningstar, Inc. (NASDAQ:MORN). All of these stocks’ market caps match HAE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RP | 29 | 603843 | -7 |
| KGC | 28 | 447018 | 3 |
| PNR | 29 | 391097 | 3 |
| MORN | 13 | 235862 | -8 |
| Average | 24.75 | 419455 | -2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $419 million. That figure was $710 million in HAE’s case. RealPage, Inc. (NASDAQ:RP) is the most popular stock in this table. On the other hand Morningstar, Inc. (NASDAQ:MORN) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Haemonetics Corporation (NYSE:HAE) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 8.3% in 2020 through the end of May and still beat the market by 13.2 percentage points. Unfortunately HAE wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on HAE were disappointed as the stock returned 10.1% during the second quarter (through the end of May) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.
