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 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards ACM Research, Inc. (NASDAQ:ACMR).
Is ACM Research, Inc. (NASDAQ:ACMR) a marvelous investment today? Hedge funds were taking an optimistic view. The number of long hedge fund positions inched up by 3 lately. ACM Research, Inc. (NASDAQ:ACMR) was in 19 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 16. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ACMR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
According to most market participants, hedge funds are viewed as unimportant, old financial tools of the past. While there are more than 8000 funds in operation at present, We look at the moguls of this group, about 850 funds. Most estimates calculate that this group of people oversee the majority of the hedge fund industry’s total asset base, and by monitoring their finest equity investments, Insider Monkey has revealed a few investment strategies that have historically outrun the market. Insider Monkey’s flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Lei Zhang of Hillhouse Capital Management
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Do Hedge Funds Think ACMR Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ACMR over the last 23 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
More specifically, Indus Capital was the largest shareholder of ACM Research, Inc. (NASDAQ:ACMR), with a stake worth $57.4 million reported as of the end of March. Trailing Indus Capital was Jericho Capital Asset Management, which amassed a stake valued at $57.4 million. Hillhouse Capital Management, One01 Capital, and Millennium Management 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 Indus Capital allocated the biggest weight to ACM Research, Inc. (NASDAQ:ACMR), around 9.91% of its 13F portfolio. Panview Capital is also relatively very bullish on the stock, dishing out 9.88 percent of its 13F equity portfolio to ACMR.
As industrywide interest jumped, key hedge funds have been driving this bullishness. Jericho Capital Asset Management, managed by Josh Resnick, established the largest position in ACM Research, Inc. (NASDAQ:ACMR). Jericho Capital Asset Management had $57.4 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $14.9 million investment in the stock during the quarter. The following funds were also among the new ACMR investors: Ryan Thall’s Panview Capital, Michael Gelband’s ExodusPoint Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as ACM Research, Inc. (NASDAQ:ACMR) but similarly valued. We will take a look at Quotient Technology Inc (NYSE:QUOT), Ichor Holdings Ltd. (NASDAQ:ICHR), Industrial Logistics Properties Trust (NASDAQ:ILPT), Travere Therapeutics, Inc. (NASDAQ:TVTX), Alphatec Holdings Inc (NASDAQ:ATEC), Compass Diversified Holdings (NYSE:CODI), and PGT Innovations Inc. (NASDAQ:PGTI). This group of stocks’ market values are closest to ACMR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| QUOT | 25 | 580993 | 6 |
| ICHR | 12 | 69845 | -12 |
| ILPT | 11 | 8780 | 3 |
| TVTX | 27 | 661871 | 0 |
| ATEC | 18 | 167283 | 1 |
| CODI | 5 | 35155 | 1 |
| PGTI | 10 | 81351 | 2 |
| Average | 15.4 | 229325 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.4 hedge funds with bullish positions and the average amount invested in these stocks was $229 million. That figure was $213 million in ACMR’s case. Travere Therapeutics, Inc. (NASDAQ:TVTX) is the most popular stock in this table. On the other hand Compass Diversified Holdings (NYSE:CODI) is the least popular one with only 5 bullish hedge fund positions. ACM Research, Inc. (NASDAQ:ACMR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ACMR is 69.8. 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 23.8% in 2021 through July 16th and beat the market again by 7.7 percentage points. Unfortunately ACMR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ACMR were disappointed as the stock returned -6.9% since the end of March (through 7/16) 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.
Follow Acm Research Inc. (NASDAQ:ACMR)
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Disclosure: None. This article was originally published at Insider Monkey.
