After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards FIGS Inc. (NYSE:FIGS).
Is FIGS a good stock to buy now? Money managers were becoming hopeful. The number of bullish hedge fund bets rose by 21 in recent months. FIGS Inc. (NYSE:FIGS) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that FIGS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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. Now we’re going to take a look at the fresh hedge fund action surrounding FIGS Inc. (NYSE:FIGS).
Do Hedge Funds Think FIGS Is A Good Stock To Buy Now?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21 from one quarter earlier. The graph below displays the number of hedge funds with bullish position in FIGS over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Andreas Halvorsen’s Viking Global has the most valuable position in FIGS Inc. (NYSE:FIGS), worth close to $547.5 million, accounting for 1.5% of its total 13F portfolio. Sitting at the No. 2 spot is Soros Fund Management, led by George Soros, holding a $116 million position; 2.1% of its 13F portfolio is allocated to the company. Other professional money managers that hold long positions include Lone Pine Capital, and Joseph Samuels’s Islet Management. In terms of the portfolio weights assigned to each position Soros Fund Management allocated the biggest weight to FIGS Inc. (NYSE:FIGS), around 2.14% of its 13F portfolio. Viking Global is also relatively very bullish on the stock, dishing out 1.52 percent of its 13F equity portfolio to FIGS.
Consequently, key hedge funds have been driving this bullishness. Islet Management, managed by Joseph Samuels, assembled the largest position in FIGS Inc. (NYSE:FIGS). Islet Management had $17 million invested in the company at the end of the quarter. James Woodson Davis’s Woodson Capital Management also made a $10.9 million investment in the stock during the quarter. The following funds were also among the new FIGS investors: Jimmy Levin’s Sculptor Capital, Richard Driehaus’s Driehaus Capital, and Steve Cohen’s Point72 Asset Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as FIGS Inc. (NYSE:FIGS) but similarly valued. We will take a look at Leggett & Platt, Inc. (NYSE:LEG), Power Integrations Inc (NASDAQ:POWI), Ingredion Incorporated (NYSE:INGR), Red Rock Resorts, Inc. (NASDAQ:RRR), MicroStrategy Incorporated (NASDAQ:MSTR), United States Steel Corporation (NYSE:X), and NeoGenomics, Inc. (NASDAQ:NEO). This group of stocks’ market caps resemble FIGS’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 20.6 hedge funds with bullish positions and the average amount invested in these stocks was $278 million. That figure was $822 million in FIGS’s case. Red Rock Resorts, Inc. (NASDAQ:RRR) is the most popular stock in this table. On the other hand Leggett & Platt, Inc. (NYSE:LEG) is the least popular one with only 16 bullish hedge fund positions. FIGS Inc. (NYSE:FIGS) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for FIGS is 50. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately FIGS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FIGS were disappointed as the stock returned -25.8% since the end of September (through 12/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.