Is HAE A Good Stock To Buy According To Hedge Funds?

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of Haemonetics Corporation (NYSE:HAE) based on that data.

Is HAE a good stock to buy? Haemonetics Corporation (NYSE:HAE) investors should pay attention to a decrease in enthusiasm from smart money recently. Haemonetics Corporation (NYSE:HAE) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic is 39. There were 39 hedge funds in our database with HAE positions at the end of the second quarter. Our calculations also showed that HAE isn’t among the 30 most popular stocks among hedge funds (click for Q3 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.

In the eyes of most stock holders, hedge funds are perceived as underperforming, old financial tools of yesteryear. While there are over 8000 funds trading at present, Our experts hone in on the top tier of this club, around 850 funds. It is estimated that this group of investors watch over the lion’s share of the smart money’s total asset base, and by monitoring their best stock picks, Insider Monkey has formulated many investment strategies that have historically outpaced the broader indices. Insider Monkey’s flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .

John Overdeck of Two Sigma

John Overdeck of Two Sigma Advisors

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock right now. We go through lists like the 15 best blue chip stocks to buy to pick the best large-cap stocks to buy. 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 website. Now we’re going to take a peek at the fresh hedge fund action encompassing Haemonetics Corporation (NYSE:HAE).

Do Hedge Funds Think HAE Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2020, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards HAE over the last 21 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is HAE A Good Stock To Buy?

Among these funds, Renaissance Technologies held the most valuable stake in Haemonetics Corporation (NYSE:HAE), which was worth $168.8 million at the end of the third quarter. On the second spot was Point72 Asset Management which amassed $145.4 million worth of shares. Royce & Associates, Two Sigma Advisors, and Holocene Advisors 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 BeaconLight Capital allocated the biggest weight to Haemonetics Corporation (NYSE:HAE), around 2.91% of its 13F portfolio. Nitorum Capital is also relatively very bullish on the stock, dishing out 1.55 percent of its 13F equity portfolio to HAE.

Because Haemonetics Corporation (NYSE:HAE) has witnessed falling interest from hedge fund managers, it’s easy to see that there exists a select few hedge funds that slashed their full holdings by the end of the third quarter. It’s worth mentioning that Greg Martinez’s Parkman Healthcare Partners sold off the largest position of the 750 funds monitored by Insider Monkey, worth about $2.7 million in stock. George McCabe’s fund, Portolan Capital Management, also cut its stock, about $2.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 7 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Haemonetics Corporation (NYSE:HAE). We will take a look at Change Healthcare Inc. (NASDAQ:CHNG), Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR), Douglas Emmett, Inc. (NYSE:DEI), Schneider National, Inc. (NYSE:SNDR), Jamf Holding Corp. (NASDAQ:JAMF), People’s United Financial, Inc. (NASDAQ:PBCT), and Eaton Vance Corp (NYSE:EV). This group of stocks’ market caps match HAE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHNG 49 1360900 2
ARWR 22 189480 1
DEI 24 591201 -3
SNDR 15 142116 -2
JAMF 15 175008 15
PBCT 22 115576 -2
EV 23 199927 -5
Average 24.3 396315 0.9

View table here if you experience formatting issues.

As you can see these stocks had an average of 24.3 hedge funds with bullish positions and the average amount invested in these stocks was $396 million. That figure was $646 million in HAE’s case. Change Healthcare Inc. (NASDAQ:CHNG) is the most popular stock in this table. On the other hand Schneider National, Inc. (NYSE:SNDR) is the least popular one with only 15 bullish hedge fund positions. Haemonetics Corporation (NYSE:HAE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HAE is 47.6. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 33.3% in 2020 through December 18th and still beat the market by 16.4 percentage points. Hedge funds were also right about betting on HAE as the stock returned 37.5% since the end of Q3 (through 12/18) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

Follow Haemonetics Corp (NYSE:HAE)

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