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Hedge Funds Have Never Been This Bullish On Hanger, Inc. (HNGR)

The Insider Monkey team has completed processing the quarterly 13F filings for the December quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Hanger, Inc. (NYSE:HNGR).

Hanger, Inc. (NYSE:HNGR) investors should pay attention to an increase in enthusiasm from smart money lately. Our calculations also showed that HNGR isn’t among the 30 most popular stocks among hedge funds.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 32 percentage points since May 2014 through March 12, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 27.5% through March 12, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Carlo Cannell

We’re going to take a glance at the key hedge fund action encompassing Hanger, Inc. (NYSE:HNGR).

Hedge fund activity in Hanger, Inc. (NYSE:HNGR)

At Q4’s end, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the previous quarter. On the other hand, there were a total of 1 hedge funds with a bullish position in HNGR 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.

HNGR_may2019

The largest stake in Hanger, Inc. (NYSE:HNGR) was held by Courage Capital, which reported holding $41.6 million worth of stock at the end of December. It was followed by Blue Mountain Capital with a $34.1 million position. Other investors bullish on the company included Prosight Capital, Cannell Capital, and Tudor Investment Corp.

As aggregate interest increased, specific money managers were breaking ground themselves. SCW Capital Management, managed by John R. Wagner, initiated the largest position in Hanger, Inc. (NYSE:HNGR). SCW Capital Management had $17.6 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also initiated a $4 million position during the quarter. The following funds were also among the new HNGR investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, Ken Griffin’s Citadel Investment Group, and Michael Gelband’s ExodusPoint Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Hanger, Inc. (NYSE:HNGR). We will take a look at Kraton Corporation (NYSE:KRA), New Media Investment Group Inc (NYSE:NEWM), Infinera Corp. (NASDAQ:INFN), and Armada Hoffler Properties Inc (NYSE:AHH). All of these stocks’ market caps are similar to HNGR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KRA 17 50586 -5
NEWM 17 35940 -3
INFN 16 143455 -9
AHH 9 55295 1
Average 14.75 71319 -4

View table here if you experience formatting issues.

As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $194 million in HNGR’s case. Kraton Corporation (NYSE:KRA) is the most popular stock in this table. On the other hand Armada Hoffler Properties Inc (NYSE:AHH) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Hanger, Inc. (NYSE:HNGR) is more popular among hedge funds. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Unfortunately HNGR wasn’t nearly as popular as these 15 stock and hedge funds that were betting on HNGR were disappointed as the stock returned 0% and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 15 most popular stocks) among hedge funds as 13 of these stocks already outperformed the market this year.

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

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