In this article we will take a look at whether hedge funds think Enovix Corporation (NASDAQ:ENVX) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Is Enovix Corporation (NASDAQ:ENVX) a bargain? Prominent investors were in an optimistic mood. The number of long hedge fund bets went up by 23 lately. Enovix Corporation (NASDAQ:ENVX) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that ENVX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Alex Sacerdote of Whale Rock Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Keeping this in mind let’s analyze the fresh hedge fund action encompassing Enovix Corporation (NASDAQ:ENVX).
Do Hedge Funds Think ENVX Is A Good Stock To Buy Now?
At third quarter’s end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 23 from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in ENVX a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, York Capital Management held the most valuable stake in Enovix Corporation (NASDAQ:ENVX) , which was worth $139.8 million at the end of the third quarter. On the second spot was Whale Rock Capital Management which amassed $135.5 million worth of shares. Park West Asset Management, Electron Capital Partners, and Luminus Management 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 York Capital Management allocated the biggest weight to Enovix Corporation (NASDAQ:ENVX) , around 14.76% of its 13F portfolio. Luminus Management is also relatively very bullish on the stock, designating 6.57 percent of its 13F equity portfolio to ENVX.
With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. York Capital Management, managed by James Dinan, created the largest position in Enovix Corporation (NASDAQ:ENVX) . York Capital Management had $139.8 million invested in the company at the end of the quarter. Alex Sacerdote’s Whale Rock Capital Management also made a $135.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter S. Park’s Park West Asset Management, Jos Shaver’s Electron Capital Partners, and Jonathan Barrett and Paul Segal’s Luminus Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Enovix Corporation (NASDAQ:ENVX) but similarly valued. These stocks are First Bancorp (NYSE:FBP), Cadence Bancorporation (NYSE:CADE), Yelp Inc (NYSE:YELP), American Equity Investment Life Holding Company (NYSE:AEL), United Natural Foods, Inc. (NASDAQ:UNFI), Columbia Banking System Inc (NASDAQ:COLB), and Avista Corp (NYSE:AVA). This group of stocks’ market caps resemble ENVX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FBP | 26 | 253717 | 1 |
| CADE | 24 | 113674 | -1 |
| YELP | 26 | 534890 | -1 |
| AEL | 20 | 170592 | 0 |
| UNFI | 19 | 92199 | 4 |
| COLB | 13 | 151306 | 1 |
| AVA | 14 | 42162 | -3 |
| Average | 20.3 | 194077 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.3 hedge funds with bullish positions and the average amount invested in these stocks was $194 million. That figure was $662 million in ENVX’s case. First Bancorp (NYSE:FBP) is the most popular stock in this table. On the other hand Columbia Banking System Inc (NASDAQ:COLB) is the least popular one with only 13 bullish hedge fund positions. Enovix Corporation (NASDAQ:ENVX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ENVX is 71.5. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on ENVX as the stock returned 64.6% since the end of Q3 (through 12/9) 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.
