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 Atotech Limited (NYSE:ATC).
Atotech Limited (NYSE:ATC) has seen an increase in hedge fund sentiment recently. Atotech Limited (NYSE:ATC) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ATC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Sander Gerber of Hudson Bay 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 let’s review the fresh hedge fund action encompassing Atotech Limited (NYSE:ATC).
Do Hedge Funds Think ATC Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ATC over the last 25 quarters. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
More specifically, Magnetar Capital was the largest shareholder of Atotech Limited (NYSE:ATC), with a stake worth $65.1 million reported as of the end of September. Trailing Magnetar Capital was Water Island Capital, which amassed a stake valued at $29 million. Millennium Management, TIG Advisors, and Hudson Bay Capital 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 Water Island Capital allocated the biggest weight to Atotech Limited (NYSE:ATC), around 1.67% of its 13F portfolio. TIG Advisors is also relatively very bullish on the stock, earmarking 1.05 percent of its 13F equity portfolio to ATC.
Now, specific money managers were leading the bulls’ herd. Magnetar Capital, managed by Alec Litowitz and Ross Laser, created the biggest position in Atotech Limited (NYSE:ATC). Magnetar Capital had $65.1 million invested in the company at the end of the quarter. John Orrico’s Water Island Capital also made a $29 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Glazer’s Glazer Capital, Michael Hintze’s CQS Cayman LP, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s now take a look at hedge fund activity in other stocks similar to Atotech Limited (NYSE:ATC). We will take a look at United Bankshares, Inc. (NASDAQ:UBSI), Adagio Therapeutics Inc. (NASDAQ:ADGI), Balchem Corporation (NASDAQ:BCPC), Sendas Distribuidora S.A. (NYSE:ASAI), 51job, Inc. (NASDAQ:JOBS), National Storage Affiliates Trust (NYSE:NSA), and UMB Financial Corporation (NASDAQ:UMBF). This group of stocks’ market valuations are closest to ATC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UBSI | 14 | 31128 | 5 |
| ADGI | 12 | 612999 | 12 |
| BCPC | 14 | 52824 | -1 |
| ASAI | 4 | 12500 | -3 |
| JOBS | 19 | 607968 | 1 |
| NSA | 21 | 218562 | 1 |
| UMBF | 16 | 178181 | 2 |
| Average | 14.3 | 244880 | 2.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.3 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $268 million in ATC’s case. National Storage Affiliates Trust (NYSE:NSA) is the most popular stock in this table. On the other hand Sendas Distribuidora S.A. (NYSE:ASAI) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Atotech Limited (NYSE:ATC) is more popular among hedge funds. Our overall hedge fund sentiment score for ATC is 86. 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 ATC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ATC were disappointed as the stock returned 2.7% 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.
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Disclosure: None. This article was originally published at Insider Monkey.
