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 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards EnerSys (NYSE:ENS).
EnerSys (NYSE:ENS) has seen an increase in enthusiasm from smart money of late. EnerSys (NYSE:ENS) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 28. There were 19 hedge funds in our database with ENS positions at the end of the second quarter. Our calculations also showed that ENS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Jeffrey Gendell of Tontine Asset 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 take a peek at the latest hedge fund action surrounding EnerSys (NYSE:ENS).
Do Hedge Funds Think ENS Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 26% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ENS over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Scopia Capital held the most valuable stake in EnerSys (NYSE:ENS), which was worth $41.7 million at the end of the third quarter. On the second spot was Shellback Capital which amassed $36.8 million worth of shares. ACK Asset Management, AQR Capital Management, and Hill City Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position ACK Asset Management allocated the biggest weight to EnerSys (NYSE:ENS), around 7.26% of its 13F portfolio. Scopia Capital is also relatively very bullish on the stock, setting aside 4.5 percent of its 13F equity portfolio to ENS.
With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, initiated the most valuable position in EnerSys (NYSE:ENS). Scopia Capital had $41.7 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also initiated a $5.3 million position during the quarter. The other funds with brand new ENS positions are Jeffrey Gendell’s Tontine Asset Management, Greg Eisner’s Engineers Gate Manager, and Jinghua Yan’s TwinBeech Capital.
Let’s check out hedge fund activity in other stocks similar to EnerSys (NYSE:ENS). We will take a look at Spire Inc. (NYSE:SR), American States Water Co (NYSE:AWR), Manchester United PLC (NYSE:MANU), The Brink’s Company (NYSE:BCO), Marathon Patent Group, Inc. (NASDAQ:MARA), Insight Enterprises, Inc. (NASDAQ:NSIT), and Phreesia, Inc. (NYSE:PHR). This group of stocks’ market valuations are similar to ENS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SR | 11 | 21853 | 2 |
| AWR | 16 | 37685 | 2 |
| MANU | 6 | 151055 | -6 |
| BCO | 17 | 281593 | 0 |
| MARA | 12 | 46753 | -7 |
| NSIT | 16 | 357454 | -3 |
| PHR | 20 | 150986 | -6 |
| Average | 14 | 149626 | -2.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $150 million. That figure was $196 million in ENS’s case. Phreesia, Inc. (NYSE:PHR) is the most popular stock in this table. On the other hand Manchester United PLC (NYSE:MANU) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks EnerSys (NYSE:ENS) is more popular among hedge funds. Our overall hedge fund sentiment score for ENS is 85.7. 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. 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 still beat the market by 5.1 percentage points. Unfortunately ENS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ENS were disappointed as the stock returned 3.5% since the end of the third quarter (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 most of these stocks already outperformed the market since 2019.
Follow Enersys (NYSE:ENS)
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Disclosure: None. This article was originally published at Insider Monkey.
