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 second 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 Amarin Corporation plc (NASDAQ:AMRN) based on that data.
Is Amarin Corporation plc (NASDAQ:AMRN) a buy right now? The smart money was in a pessimistic mood. The number of long hedge fund positions retreated by 1 lately. Amarin Corporation plc (NASDAQ:AMRN) was in 21 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 39. Our calculations also showed that AMRN isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Kris Jenner of Rock Springs Capital Management
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Do Hedge Funds Think AMRN Is A Good Stock To Buy Now?
At second quarter’s end, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -5% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards AMRN over the last 24 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the largest position in Amarin Corporation plc (NASDAQ:AMRN). Baker Bros. Advisors has a $115.9 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Eversept Partners, managed by Kamran Moghtaderi, which holds a $73 million position; 5.7% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions consist of Behzad Aghazadeh’s Avoro Capital Advisors (venBio Select Advisor), Dov Gertzulin’s DG Capital Management and Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management. In terms of the portfolio weights assigned to each position Eversept Partners allocated the biggest weight to Amarin Corporation plc (NASDAQ:AMRN), around 5.73% of its 13F portfolio. DG Capital Management is also relatively very bullish on the stock, dishing out 4.1 percent of its 13F equity portfolio to AMRN.
Since Amarin Corporation plc (NASDAQ:AMRN) has witnessed declining sentiment from hedge fund managers, logic holds that there were a few hedgies who were dropping their entire stakes by the end of the second quarter. At the top of the heap, Bhagwan Jay Rao’s Integral Health Asset Management cut the largest investment of all the hedgies watched by Insider Monkey, worth close to $3.1 million in stock. Kamran Moghtaderi’s fund, Eversept Partners, also sold off its stock, about $0.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds by the end of the second quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Amarin Corporation plc (NASDAQ:AMRN) but similarly valued. We will take a look at Blink Charging Co. (NASDAQ:BLNK), Air Transport Services Group Inc. (NASDAQ:ATSG), Sangamo Therapeutics, Inc. (NASDAQ:SGMO), Guess’, Inc. (NYSE:GES), Cardiovascular Systems Inc (NASDAQ:CSII), M/I Homes Inc (NYSE:MHO), and Immunocore Holdings plc (NASDAQ:IMCR). All of these stocks’ market caps match AMRN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BLNK | 7 | 14017 | -5 |
| ATSG | 19 | 66244 | 1 |
| SGMO | 17 | 64645 | 0 |
| GES | 25 | 123505 | 5 |
| CSII | 17 | 149158 | 1 |
| MHO | 17 | 99639 | 1 |
| IMCR | 11 | 252802 | -6 |
| Average | 16.1 | 110001 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.1 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $298 million in AMRN’s case. Guess’, Inc. (NYSE:GES) is the most popular stock in this table. On the other hand Blink Charging Co. (NASDAQ:BLNK) is the least popular one with only 7 bullish hedge fund positions. Amarin Corporation plc (NASDAQ:AMRN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AMRN is 59. 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 gained 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Hedge funds were also right about betting on AMRN as the stock returned 14.2% since the end of Q2 (through 10/22) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Amarin Corp Plc (NASDAQ:AMRN)
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Disclosure: None. This article was originally published at Insider Monkey.
