Hedge Funds Are Buying Misonix, Inc. (MSON)

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 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. In this article we are going to take a look at smart money sentiment towards Misonix, Inc. (NASDAQ:MSON).

Misonix, Inc. (NASDAQ:MSON) investors should pay attention to an increase in enthusiasm from smart money recently. Misonix, Inc. (NASDAQ:MSON) was in 10 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 10. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 7 hedge funds in our database with MSON positions at the end of the first quarter. Our calculations also showed that MSON isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

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Justin John Ferayorni of Tamarack Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to view the fresh hedge fund action surrounding Misonix, Inc. (NASDAQ:MSON).

Do Hedge Funds Think MSON Is A Good Stock To Buy Now?

At Q2’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from the previous quarter. On the other hand, there were a total of 7 hedge funds with a bullish position in MSON a year ago. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).

More specifically, Royce & Associates was the largest shareholder of Misonix, Inc. (NASDAQ:MSON), with a stake worth $17.1 million reported as of the end of June. Trailing Royce & Associates was Pura Vida Investments, which amassed a stake valued at $10.5 million. Juniper Investment Company, Tamarack Capital Management, and Soleus 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 Juniper Investment Company allocated the biggest weight to Misonix, Inc. (NASDAQ:MSON), around 6.85% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, designating 2.36 percent of its 13F equity portfolio to MSON.

As aggregate interest increased, specific money managers were breaking ground themselves. Renaissance Technologies, initiated the biggest position in Misonix, Inc. (NASDAQ:MSON). Renaissance Technologies had $0.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.4 million position during the quarter. The only other fund with a brand new MSON position is Israel Englander’s Millennium Management.

Let’s go over hedge fund activity in other stocks similar to Misonix, Inc. (NASDAQ:MSON). We will take a look at Itamar Medical Ltd. (NASDAQ:ITMR), Global Water Resources, Inc. (NASDAQ:GWRS), CNB Financial Corporation (NASDAQ:CCNE), Central Puerto S.A. (NYSE:CEPU), Atento SA (NYSE:ATTO), Gladstone Capital Corporation (NASDAQ:GLAD), and Trinity Capital Inc. (NASDAQ:TRIN). This group of stocks’ market values are closest to MSON’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 6.9 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $54 million in MSON’s case. Trinity Capital Inc. (NASDAQ:TRIN) is the most popular stock in this table. On the other hand Global Water Resources, Inc. (NASDAQ:GWRS) is the least popular one with only 2 bullish hedge fund positions. Misonix, Inc. (NASDAQ:MSON) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MSON is 74.4. 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 25.7% in 2021 through September 27th and still beat the market by 6.2 percentage points. Hedge funds were also right about betting on MSON as the stock returned 19.5% since the end of Q2 (through 9/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.