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 LivaNova PLC (NASDAQ:LIVN) based on that data.
LivaNova PLC (NASDAQ:LIVN) was in 32 hedge funds’ portfolios at the end of September. The all time high for this statistic is 36. LIVN investors should be aware of a decrease in support from the world’s most elite money managers lately. There were 36 hedge funds in our database with LIVN holdings at the end of June. Our calculations also showed that LIVN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Ricky Sandler of Eminence Capital
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 take a gander at the fresh hedge fund action encompassing LivaNova PLC (NASDAQ:LIVN).
Do Hedge Funds Think LIVN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from the second quarter of 2021. By comparison, 26 hedge funds held shares or bullish call options in LIVN a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Redmile Group held the most valuable stake in LivaNova PLC (NASDAQ:LIVN), which was worth $173.5 million at the end of the third quarter. On the second spot was Eminence Capital which amassed $138.7 million worth of shares. Millennium Management, Paradice Investment Management, and Sachem Head 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 Hawk Ridge Management allocated the biggest weight to LivaNova PLC (NASDAQ:LIVN), around 5.43% of its 13F portfolio. Paradice Investment Management is also relatively very bullish on the stock, dishing out 4.45 percent of its 13F equity portfolio to LIVN.
Since LivaNova PLC (NASDAQ:LIVN) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedge funds that decided to sell off their positions entirely heading into Q4. Intriguingly, Matthew Stadelman’s Diamond Hill Capital said goodbye to the largest stake of the 750 funds tracked by Insider Monkey, totaling an estimated $34.3 million in stock. Kerr Neilson’s fund, Platinum Asset Management, also dumped its stock, about $2.3 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 4 funds heading into Q4.
Let’s now take a look at hedge fund activity in other stocks similar to LivaNova PLC (NASDAQ:LIVN). We will take a look at UFP Industries, Inc. (NASDAQ:UFPI), Nordstrom, Inc. (NYSE:JWN), Sanderson Farms, Inc. (NASDAQ:SAFM), Portland General Electric Company (NYSE:POR), Hannon Armstrong Sustnbl Infrstr Cap Inc (NYSE:HASI), Shutterstock Inc (NYSE:SSTK), and Daqo New Energy Corp (NYSE:DQ). This group of stocks’ market values match LIVN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UFPI | 17 | 143498 | 4 |
| JWN | 25 | 365461 | -6 |
| SAFM | 31 | 571707 | -2 |
| POR | 15 | 80234 | -6 |
| HASI | 15 | 139078 | 5 |
| SSTK | 19 | 234636 | 1 |
| DQ | 18 | 221632 | 1 |
| Average | 20 | 250892 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $251 million. That figure was $1140 million in LIVN’s case. Sanderson Farms, Inc. (NASDAQ:SAFM) is the most popular stock in this table. On the other hand Portland General Electric Company (NYSE:POR) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks LivaNova PLC (NASDAQ:LIVN) is more popular among hedge funds. Our overall hedge fund sentiment score for LIVN is 77.7. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately LIVN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on LIVN were disappointed as the stock returned 1.2% since the end of the third quarter (through 11/30) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
