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 6 years and analyze what the smart money thinks of Organon & Co. (NYSE:OGN) based on that data and determine whether they were really smart about the stock.
Is Organon & Co. (NYSE:OGN) the right pick for your portfolio? Money managers were becoming hopeful. The number of long hedge fund bets rose by 35 recently. Organon & Co. (NYSE:OGN) was in 35 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that OGN isn’t among the 30 most popular stocks among hedge funds (click for Q3 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 let’s take a peek at the latest hedge fund action regarding Organon & Co. (NYSE:OGN).
Larry Robbins of Glenview Capital
Do Hedge Funds Think OGN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 35 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 35 from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in OGN over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Organon & Co. (NYSE:OGN) was held by AQR Capital Management, which reported holding $71.2 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $37 million position. Other investors bullish on the company included D E Shaw, Glenview Capital, and Impax Asset Management. In terms of the portfolio weights assigned to each position Venator Management LLC allocated the biggest weight to Organon & Co. (NYSE:OGN) , around 3.6% of its 13F portfolio. Beddow Capital Management is also relatively very bullish on the stock, earmarking 1.88 percent of its 13F equity portfolio to OGN.
Now, key hedge funds have been driving this bullishness. Glenview Capital, managed by Larry Robbins, initiated the most outsized position in Organon & Co. (NYSE:OGN) . Glenview Capital had $24.7 million invested in the company at the end of the quarter. Bill Miller’s Miller Value Partners also made a $5.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Gelband’s ExodusPoint Capital and Peter Algert’s Algert Global.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Organon & Co. (NYSE:OGN) but similarly valued. These stocks are Ternium S.A. (NYSE:TX), United Therapeutics Corporation (NASDAQ:UTHR), AGNC Investment Corp. (NASDAQ:AGNC), First Citizens BancShares Inc. (NASDAQ:FCNCA), The New York Times Company (NYSE:NYT), Huaneng Power International Inc (NYSE:HNP), and Vistra Corp. (NYSE:VST). This group of stocks’ market values resemble OGN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TX | 18 | 239719 | 3 |
| UTHR | 52 | 2177654 | 7 |
| AGNC | 16 | 81493 | -3 |
| FCNCA | 24 | 819665 | 3 |
| NYT | 45 | 2431038 | -3 |
| HNP | 4 | 5801 | 0 |
| VST | 38 | 1221296 | 6 |
| Average | 28.1 | 996667 | 1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 28.1 hedge funds with bullish positions and the average amount invested in these stocks was $997 million. That figure was $332 million in OGN’s case. United Therapeutics Corporation (NASDAQ:UTHR) is the most popular stock in this table. On the other hand Huaneng Power International Inc (NYSE:HNP) is the least popular one with only 4 bullish hedge fund positions. Organon & Co. (NYSE:OGN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for OGN is 61.7. 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, OGN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on OGN were disappointed as the stock returned -1.8% since the end of September (through 1/31) 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 all of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
