Amkor Technology, Inc. (AMKR) Stands Out Among Market Cap Peers

Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Amkor Technology, Inc. (NASDAQ:AMKR).

Amkor Technology, Inc. (NASDAQ:AMKR) has seen a decrease in support from the world’s most elite money managers lately, with being held in the portfolios of 16 investors within Insider Monkey’s database. At the end of this article we will also compare Amkor Technology, Inc. to other stocks including Opus Bank (NASDAQ:OPB), Envestnet Inc (NYSE:ENV), and Seacor Holdings, Inc. (NYSE:CKH) to get a better sense of its popularity.

To most investors, hedge funds are assumed to be worthless, old financial tools of years past. While there are over 8,000 funds with their doors open at present, we choose to focus on the elite of this group, around 700 funds. These hedge fund managers handle most of the smart money’s total capital, and by keeping track of their first-class investments, Insider Monkey has spotted various investment strategies that have historically outrun the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per year for a decade in their back tests.

Now, we’re going to go over the recent action surrounding Amkor Technology, Inc. (NASDAQ:AMKR).

Hedge fund activity in Amkor Technology, Inc. (NASDAQ:AMKR)

Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, an 11% decline from the previous quarter. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings significantly (or had already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Paul J. Isaac’s Arbiter Partners Capital Management has the number one position in Amkor Technology, Inc. (NASDAQ:AMKR), worth close to $18.2 million, comprising 1.8% of its total 13F portfolio. The second-most bullish fund is Renaissance Technologies, holding an $8.5 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other peers that are bullish contain D E Shaw, Ken Hahn’s Quentec Asset Management, and Joel Greenblatt’s Gotham Asset Management.

Seeing as Amkor Technology, Inc. (NASDAQ:AMKR) has witnessed declining sentiment from hedge fund managers, we can see that there was a specific group of hedge funds that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Israel Englander’s Millennium Management cut the biggest investment of the 700 funds watched by Insider Monkey, valued at close to $5.6 million in stock. Neil Chriss’ fund, Hutchin Hill Capital, also sold off its stock, about $1.3 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Amkor Technology, Inc. (NASDAQ:AMKR) but similarly valued. These stocks are Opus Bank (NASDAQ:OPB), Envestnet Inc (NYSE:ENV), Seacor Holdings, Inc. (NYSE:CKH), and Aimmune Therapeutics Inc (NASDAQ:AIMT). All of these stocks’ market caps match Amkor Technology, Inc.’s market cap.

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 $252 million. That figure was $56 million in Amkor Technology, Inc.’s case. Opus Bank (NASDAQ:OPB) is the most popular stock in this table. On the other hand Aimmune Therapeutics Inc (NASDAQ:AIMT) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Amkor Technology, Inc. (NASDAQ:AMKR) is more popular among hedge funds, although the amount of capital invested in it is quite low. Nonetheless, considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.