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. Insider Monkey finished processing 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards ANI Pharmaceuticals Inc (NASDAQ:ANIP).
Is ANI Pharmaceuticals Inc (NASDAQ:ANIP) undervalued? Investors who are in the know were becoming less hopeful. The number of long hedge fund bets decreased by 4 in recent months. ANI Pharmaceuticals Inc (NASDAQ:ANIP) was in 6 hedge funds’ portfolios at the end of March. The all time high for this statistic is 17. Our calculations also showed that ANIP isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 10 hedge funds in our database with ANIP positions at the end of the fourth quarter.
In the eyes of most shareholders, hedge funds are assumed to be slow, outdated financial vehicles of yesteryear. While there are greater than 8000 funds with their doors open at the moment, Our researchers choose to focus on the elite of this group, around 850 funds. It is estimated that this group of investors oversee bulk of all hedge funds’ total asset base, and by watching their inimitable picks, Insider Monkey has spotted several investment strategies that have historically outpaced Mr. Market. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
David Siegel of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. 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 let’s take a gander at the latest hedge fund action surrounding ANI Pharmaceuticals Inc (NASDAQ:ANIP).
Do Hedge Funds Think ANIP Is A Good Stock To Buy Now?
At the end of March, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -40% from the previous quarter. By comparison, 12 hedge funds held shares or bullish call options in ANIP a year ago. So, let’s find out 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, Renaissance Technologies has the largest position in ANI Pharmaceuticals Inc (NASDAQ:ANIP), worth close to $4.2 million, corresponding to less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism comprise Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management. In terms of the portfolio weights assigned to each position Engineers Gate Manager allocated the biggest weight to ANI Pharmaceuticals Inc (NASDAQ:ANIP), around 0.02% of its 13F portfolio. Two Sigma Advisors is also relatively very bullish on the stock, earmarking 0.01 percent of its 13F equity portfolio to ANIP.
Seeing as ANI Pharmaceuticals Inc (NASDAQ:ANIP) has experienced falling interest from the smart money, it’s easy to see that there were a few hedge funds who sold off their full holdings by the end of the first quarter. Intriguingly, Noam Gottesman’s GLG Partners sold off the largest position of the “upper crust” of funds watched by Insider Monkey, worth about $2.1 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund said goodbye to about $0.7 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 4 funds by the end of the first quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as ANI Pharmaceuticals Inc (NASDAQ:ANIP) but similarly valued. We will take a look at Universal Insurance Holdings, Inc. (NYSE:UVE), Flexion Therapeutics Inc (NASDAQ:FLXN), Lucira Health, Inc. (NASDAQ:LHDX), Jiayin Group Inc. (NASDAQ:JFIN), Sensei Biotherapeutics, Inc. (NASDAQ:SNSE), MedAvail Holdings, Inc (NASDAQ:MDVL), and Reading International Inc (NASDAQ:RDIB). This group of stocks’ market caps are similar to ANIP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UVE | 13 | 32797 | -1 |
| FLXN | 16 | 107891 | 4 |
| LHDX | 8 | 12815 | 8 |
| JFIN | 2 | 521 | -1 |
| SNSE | 12 | 26295 | 12 |
| MDVL | 9 | 245995 | 1 |
| RDIB | 1 | 240 | 0 |
| Average | 8.7 | 60936 | 3.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.7 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $10 million in ANIP’s case. Flexion Therapeutics Inc (NASDAQ:FLXN) is the most popular stock in this table. On the other hand Reading International Inc (NASDAQ:RDIB) is the least popular one with only 1 bullish hedge fund positions. ANI Pharmaceuticals Inc (NASDAQ:ANIP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ANIP is 28.3. 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 negative signal and 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 19.3% in 2021 through June 25th and surpassed the market again by 4.8 percentage points. Unfortunately ANIP wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); ANIP investors were disappointed as the stock returned -8.6% since the end of March (through 6/25) 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 most of these stocks already outperformed the market in 2021.
Follow Ani Pharmaceuticals Inc (NASDAQ:ANIP)
Follow Ani Pharmaceuticals Inc (NASDAQ:ANIP)
Suggested Articles:
- How to Best Use Insider Monkey To Increase Your Returns
- 12 Biggest Chinese Software Companies
- 13 Most Influential Women To Watch in 2021
Disclosure: None. This article was originally published at Insider Monkey.
