The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Incyte Corporation (NASDAQ:INCY) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Incyte Corporation (NASDAQ:INCY) was in 37 hedge funds’ portfolios at the end of September. The all time high for this statistic is 53. INCY investors should pay attention to an increase in support from the world’s most elite money managers lately. There were 34 hedge funds in our database with INCY holdings at the end of June. Our calculations also showed that INCY 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. Keeping this in mind we’re going to view the latest hedge fund action regarding Incyte Corporation (NASDAQ:INCY).
Arthur B Cohen and Joseph Healey of Healthcor Management LP
Do Hedge Funds Think INCY Is A Good Stock To Buy Now?
At the end of September, a total of 37 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 9% from one quarter earlier. By comparison, 35 hedge funds held shares or bullish call options in INCY a year ago. 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 Incyte Corporation (NASDAQ:INCY) was held by Baker Bros. Advisors, which reported holding $2202.5 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $303.4 million position. Other investors bullish on the company included ARK Investment Management, Armistice Capital, and D E Shaw. In terms of the portfolio weights assigned to each position Baker Bros. Advisors allocated the biggest weight to Incyte Corporation (NASDAQ:INCY), around 9.67% of its 13F portfolio. Armistice Capital is also relatively very bullish on the stock, dishing out 2.76 percent of its 13F equity portfolio to INCY.
As one would reasonably expect, some big names were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, established the most outsized position in Incyte Corporation (NASDAQ:INCY). Balyasny Asset Management had $52.3 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $31 million position during the quarter. The other funds with brand new INCY positions are Arthur B Cohen and Joseph Healey’s Healthcor Management LP, Jinghua Yan’s TwinBeech Capital, and David M. Knott’s Dorset Management.
Let’s now review hedge fund activity in other stocks similar to Incyte Corporation (NASDAQ:INCY). We will take a look at Arch Capital Group Ltd. (NASDAQ:ACGL), Smith & Nephew plc (NYSE:SNN), Avalara, Inc. (NYSE:AVLR), Elanco Animal Health Incorporated (NYSE:ELAN), Check Point Software Technologies Ltd. (NASDAQ:CHKP), Doximity Inc. (NYSE:DOCS), and Franklin Resources, Inc. (NYSE:BEN). This group of stocks’ market caps match INCY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ACGL | 31 | 1214570 | 9 |
| SNN | 19 | 106245 | 6 |
| AVLR | 24 | 1070703 | -5 |
| ELAN | 32 | 1850148 | -10 |
| CHKP | 30 | 621231 | 1 |
| DOCS | 19 | 554548 | 19 |
| BEN | 28 | 359424 | -2 |
| Average | 26.1 | 825267 | 2.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.1 hedge funds with bullish positions and the average amount invested in these stocks was $825 million. That figure was $3295 million in INCY’s case. Elanco Animal Health Incorporated (NYSE:ELAN) is the most popular stock in this table. On the other hand Smith & Nephew plc (NYSE:SNN) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Incyte Corporation (NASDAQ:INCY) is more popular among hedge funds. Our overall hedge fund sentiment score for INCY is 78.9. 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 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 returned 29.6% in 2021 and managed to beat the market by another 3.6 percentage points. Hedge funds were also right about betting on INCY as the stock returned 8.1% since the end of September (through 1/31) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Incyte Corp (NASDAQ:INCY)
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Disclosure: None. This article was originally published at Insider Monkey.
