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 Luminex Corporation (NASDAQ:LMNX).
Is Luminex Corporation (NASDAQ:LMNX) worth your attention right now? Money managers were betting on the stock. The number of long hedge fund positions advanced by 2 lately. Luminex Corporation (NASDAQ:LMNX) was in 25 hedge funds’ portfolios at the end of March. The all time high for this statistic is 29. Our calculations also showed that LMNX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.
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 analyze the key hedge fund action regarding Luminex Corporation (NASDAQ:LMNX).
Do Hedge Funds Think LMNX Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the previous quarter. The graph below displays the number of hedge funds with bullish position in LMNX over the last 23 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Robert G. Moses’s RGM Capital has the largest position in Luminex Corporation (NASDAQ:LMNX), worth close to $92 million, corresponding to 4% of its total 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $50.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish comprise Dmitry Balyasny’s Balyasny Asset Management, Justin John Ferayorni’s Tamarack Capital Management and Mark Coe’s Intrinsic Edge Capital. In terms of the portfolio weights assigned to each position RGM Capital allocated the biggest weight to Luminex Corporation (NASDAQ:LMNX), around 4.02% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, setting aside 3.13 percent of its 13F equity portfolio to LMNX.
Now, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, created the biggest position in Luminex Corporation (NASDAQ:LMNX). Balyasny Asset Management had $15.5 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $7.8 million investment in the stock during the quarter. The other funds with brand new LMNX positions are Matthew Halbower’s Pentwater Capital Management, Kamran Moghtaderi’s Eversept Partners, and Carl Tiedemann and Michael Tiedemann’s TIG Advisors.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Luminex Corporation (NASDAQ:LMNX) but similarly valued. These stocks are Tennant Company (NYSE:TNC), Usa Compression Partners LP (NYSE:USAC), Heron Therapeutics Inc (NASDAQ:HRTX), Oxford Industries, Inc. (NYSE:OXM), Codexis, Inc. (NASDAQ:CDXS), PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), and Establishment Labs Holdings Inc. (NASDAQ:ESTA). This group of stocks’ market caps resemble LMNX’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 12 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $231 million in LMNX’s case. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) is the most popular stock in this table. On the other hand Usa Compression Partners LP (NYSE:USAC) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Luminex Corporation (NASDAQ:LMNX) is more popular among hedge funds. Our overall hedge fund sentiment score for LMNX is 82.9. 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 managed to beat the market by 6.7 percentage points. Hedge funds were also right about betting on LMNX, though not to the same extent, as the stock returned 16.3% since the end of March (through July 9th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.