In this article we will take a look at whether hedge funds think Radius Global Infrastructure, Inc. (NASDAQ:RADI) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Radius Global Infrastructure, Inc. (NASDAQ:RADI) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 20. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. RADI shareholders have witnessed an increase in support from the world’s most elite money managers lately. There were 20 hedge funds in our database with RADI holdings at the end of June. Our calculations also showed that RADI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Ricky Sandler of Eminence 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 we’re going to take a look at the key hedge fund action regarding Radius Global Infrastructure, Inc. (NASDAQ:RADI).
Do Hedge Funds Think RADI Is A Good Stock To Buy Now?
At Q3’s end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the second quarter of 2021. By comparison, 0 hedge funds held shares or bullish call options in RADI a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Centerbridge Partners held the most valuable stake in Radius Global Infrastructure, Inc. (NASDAQ:RADI), which was worth $178.4 million at the end of the third quarter. On the second spot was Monarch Alternative Capital which amassed $55 million worth of shares. Eminence Capital, Harbor Spring Capital, and Park West Asset 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 Centerbridge Partners allocated the biggest weight to Radius Global Infrastructure, Inc. (NASDAQ:RADI), around 20.85% of its 13F portfolio. Monarch Alternative Capital is also relatively very bullish on the stock, earmarking 12.38 percent of its 13F equity portfolio to RADI.
As industrywide interest jumped, key money managers were leading the bulls’ herd. Park West Asset Management, managed by Peter S. Park, assembled the largest position in Radius Global Infrastructure, Inc. (NASDAQ:RADI). Park West Asset Management had $27.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $2.7 million position during the quarter. The other funds with brand new RADI positions are Robert Henry Lynch’s Aristeia Capital, Matthew Hulsizer’s PEAK6 Capital Management, and Jimmy Levin’s Sculptor Capital.
Let’s now review hedge fund activity in other stocks similar to Radius Global Infrastructure, Inc. (NASDAQ:RADI). We will take a look at Genetron Holdings Limited (NASDAQ:GTH), MaxCyte Inc. (NASDAQ:MXCT), Coherus Biosciences Inc (NASDAQ:CHRS), Scholastic Corp (NASDAQ:SCHL), First Bancorp (NASDAQ:FBNC), Astec Industries, Inc. (NASDAQ:ASTE), and Office Properties Income Trust (NASDAQ:OPI). This group of stocks’ market caps match RADI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GTH | 7 | 116922 | -7 |
| MXCT | 17 | 346202 | 17 |
| CHRS | 18 | 123722 | 1 |
| SCHL | 13 | 47533 | 0 |
| FBNC | 13 | 28654 | -2 |
| ASTE | 11 | 68390 | 1 |
| OPI | 8 | 15529 | 0 |
| Average | 12.4 | 106707 | 1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.4 hedge funds with bullish positions and the average amount invested in these stocks was $107 million. That figure was $376 million in RADI’s case. Coherus Biosciences Inc (NASDAQ:CHRS) is the most popular stock in this table. On the other hand Genetron Holdings Limited (NASDAQ:GTH) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Radius Global Infrastructure, Inc. (NASDAQ:RADI) is more popular among hedge funds. Our overall hedge fund sentiment score for RADI is 88. 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 RADI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on RADI were disappointed as the stock returned -2.4% 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.
