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. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Alphatec Holdings Inc (NASDAQ:ATEC).
Alphatec Holdings Inc (NASDAQ:ATEC) investors should pay attention to an increase in support from the world’s most elite money managers recently. Alphatec Holdings Inc (NASDAQ:ATEC) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 18. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 18 hedge funds in our database with ATEC positions at the end of the second quarter. Our calculations also showed that ATEC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
James E. Flynn of Deerfield 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. Now let’s take a look at the new hedge fund action encompassing Alphatec Holdings Inc (NASDAQ:ATEC).
Do Hedge Funds Think ATEC Is A Good Stock To Buy Now?
At third quarter’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from the second quarter of 2021. On the other hand, there were a total of 13 hedge funds with a bullish position in ATEC a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
The largest stake in Alphatec Holdings Inc (NASDAQ:ATEC) was held by Deerfield Management, which reported holding $43.8 million worth of stock at the end of September. It was followed by Point72 Asset Management with a $37.3 million position. Other investors bullish on the company included Millennium Management, Armistice Capital, and Driehaus Capital. In terms of the portfolio weights assigned to each position Parian Global Management allocated the biggest weight to Alphatec Holdings Inc (NASDAQ:ATEC), around 5.17% of its 13F portfolio. Deerfield Management is also relatively very bullish on the stock, dishing out 0.86 percent of its 13F equity portfolio to ATEC.
With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, created the most valuable call position in Alphatec Holdings Inc (NASDAQ:ATEC). Millennium Management had $9.8 million invested in the company at the end of the quarter. Greg Martinez’s Parkman Healthcare Partners also made a $3 million investment in the stock during the quarter. The following funds were also among the new ATEC investors: Robert Henry Lynch’s Aristeia Capital, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, and Jimmy Levin’s Sculptor Capital.
Let’s check out hedge fund activity in other stocks similar to Alphatec Holdings Inc (NASDAQ:ATEC). We will take a look at BrightSpire Capital Inc. (NYSE:BRSP), nLIGHT, Inc. (NASDAQ:LASR), Markforged Holding Corporation (NYSE:MKFG), BellRing Brands, Inc. (NYSE:BRBR), Century Aluminum Co (NASDAQ:CENX), Kosmos Energy Ltd (NYSE:KOS), and The RealReal, Inc. (NASDAQ:REAL). This group of stocks’ market caps match ATEC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BRSP | 13 | 109722 | 6 |
| LASR | 13 | 50564 | -1 |
| MKFG | 13 | 84293 | 13 |
| BRBR | 20 | 255001 | 4 |
| CENX | 15 | 113125 | 0 |
| KOS | 14 | 57263 | -3 |
| REAL | 21 | 169333 | -5 |
| Average | 15.6 | 119900 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.6 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $189 million in ATEC’s case. The RealReal, Inc. (NASDAQ:REAL) is the most popular stock in this table. On the other hand BrightSpire Capital Inc. (NYSE:BRSP) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Alphatec Holdings Inc (NASDAQ:ATEC) is more popular among hedge funds. Our overall hedge fund sentiment score for ATEC is 90. 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 ATEC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ATEC were disappointed as the stock returned -3.9% 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 Alphatec Holdings Inc. (NASDAQ:ATEC)
Follow Alphatec Holdings Inc. (NASDAQ:ATEC)
Suggested Articles:
- Top 10 Car Company Stocks to Invest In
- 15 Largest Spice Companies in the World
- Top 10 Cloud Computing Stocks To Buy
Disclosure: None. This article was originally published at Insider Monkey.
