Hedge Funds Are Coming Back To Maravai LifeSciences Holdings, Inc. (MRVI)

In this article we will analyze whether Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.

Is Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) ready to rally soon? Money managers were betting on the stock. The number of bullish hedge fund positions improved by 14 recently. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) was in 34 hedge funds’ portfolios at the end of September. The all time high for this statistic is 34. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that MRVI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

Daniel Sundheim of D1 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. With all of this in mind let’s go over the key hedge fund action regarding Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI).

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

At the end of the third quarter, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 70% from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in MRVI a year ago. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).

The largest stake in Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) was held by Select Equity Group, which reported holding $594.9 million worth of stock at the end of September. It was followed by Marshall Wace LLP with a $73 million position. Other investors bullish on the company included Citadel Investment Group, D1 Capital Partners, and Renaissance Technologies. In terms of the portfolio weights assigned to each position Select Equity Group allocated the biggest weight to Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI), around 2% of its 13F portfolio. Pinz Capital is also relatively very bullish on the stock, dishing out 1.86 percent of its 13F equity portfolio to MRVI.

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. CaaS Capital, managed by Frank Fu, assembled the biggest position in Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI). CaaS Capital had $25.5 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also made a $21.6 million investment in the stock during the quarter. The other funds with brand new MRVI positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Steven Boyd’s Armistice Capital, and McKinley Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) but similarly valued. These stocks are Grupo Aeroportuario del Sureste (NYSE:ASR), Paysafe Limited (NYSE:PSFE), Luminar Technologies, Inc. (NASDAQ:LAZR), Goosehead Insurance, Inc. (NASDAQ:GSHD), Pacific Biosciences of California (NASDAQ:PACB), Dingdong (Cayman) Limited (NYSE:DDL), and AbCellera Biologics Inc. (NASDAQ:ABCL). All of these stocks’ market caps match MRVI’s market cap.

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As you can see these stocks had an average of 17.4 hedge funds with bullish positions and the average amount invested in these stocks was $448 million. That figure was $1068 million in MRVI’s case. Paysafe Limited (NYSE:PSFE) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste (NYSE:ASR) is the least popular one with only 2 bullish hedge fund positions. Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MRVI is 80. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately MRVI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MRVI were disappointed as the stock returned -6.4% since the end of September (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 many of these stocks already outperformed the market since 2019.

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

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