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. We at 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. In this article we look at what those investors think of American Well Corporation (NYSE:AMWL).
American Well Corporation (NYSE:AMWL) has seen an increase in hedge fund interest of late. American Well Corporation (NYSE:AMWL) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 25. There were 20 hedge funds in our database with AMWL holdings at the end of June. Our calculations also showed that AMWL isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
James E. Flynn of Deerfield Management
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. With all of this in mind we’re going to review the fresh hedge fund action surrounding American Well Corporation (NYSE:AMWL).
Do Hedge Funds Think AMWL Is A Good Stock To Buy Now?
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 20% from one quarter earlier. By comparison, 25 hedge funds held shares or bullish call options in AMWL 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 American Well Corporation (NYSE:AMWL) was held by VGI Partners, which reported holding $20.4 million worth of stock at the end of September. It was followed by Bridger Management with a $9.5 million position. Other investors bullish on the company included Deerfield Management, Islet Management, and Balyasny Asset Management. In terms of the portfolio weights assigned to each position VGI Partners allocated the biggest weight to American Well Corporation (NYSE:AMWL), around 2.24% of its 13F portfolio. Bridger Management is also relatively very bullish on the stock, designating 1.12 percent of its 13F equity portfolio to AMWL.
As aggregate interest increased, key money managers were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, established the most valuable position in American Well Corporation (NYSE:AMWL). Balyasny Asset Management had $7.6 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also made a $1.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, Michael Gelband’s ExodusPoint Capital, and Cliff Asness’s AQR Capital Management.
Let’s now review hedge fund activity in other stocks similar to American Well Corporation (NYSE:AMWL). These stocks are Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA), Arqit Quantum Inc. (NASDAQ:ARQQ), Sleep Number Corporation (NASDAQ:SNBR), Dynavax Technologies Corporation (NASDAQ:DVAX), iRobot Corporation (NASDAQ:IRBT), Cano Health Inc. (NYSE:CANO), and Compass Minerals International, Inc. (NYSE:CMP). This group of stocks’ market valuations resemble AMWL’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IBA | 2 | 32511 | 0 |
| ARQQ | 9 | 17859 | 9 |
| SNBR | 20 | 168645 | -5 |
| DVAX | 19 | 397081 | 4 |
| IRBT | 14 | 38542 | -5 |
| CANO | 37 | 873426 | -8 |
| CMP | 14 | 80089 | -1 |
| Average | 16.4 | 229736 | -0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.4 hedge funds with bullish positions and the average amount invested in these stocks was $230 million. That figure was $79 million in AMWL’s case. Cano Health Inc. (NYSE:CANO) is the most popular stock in this table. On the other hand Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) is the least popular one with only 2 bullish hedge fund positions. American Well Corporation (NYSE:AMWL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AMWL is 69.2. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately AMWL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on AMWL were disappointed as the stock returned -29.5% since the end of September (through 12/9) 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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
