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 have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Glaukos Corporation (NYSE:GKOS) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Glaukos Corporation (NYSE:GKOS) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 21. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. GKOS investors should pay attention to an increase in support from the world’s most elite money managers recently. There were 19 hedge funds in our database with GKOS holdings at the end of June. Our calculations also showed that GKOS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Donald Sussman of Paloma Partners
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 we’re going to view the latest hedge fund action encompassing Glaukos Corporation (NYSE:GKOS).
Do Hedge Funds Think GKOS Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards GKOS over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Marshall Wace LLP was the largest shareholder of Glaukos Corporation (NYSE:GKOS), with a stake worth $32.4 million reported as of the end of September. Trailing Marshall Wace LLP was Deerfield Management, which amassed a stake valued at $29.8 million. Balyasny Asset Management, Renaissance Technologies, and Pura Vida Investments 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 Deerfield Management allocated the biggest weight to Glaukos Corporation (NYSE:GKOS), around 0.58% of its 13F portfolio. Pura Vida Investments is also relatively very bullish on the stock, designating 0.56 percent of its 13F equity portfolio to GKOS.
As one would reasonably expect, key money managers have been driving this bullishness. Deerfield Management, managed by James E. Flynn, established the largest position in Glaukos Corporation (NYSE:GKOS). Deerfield Management had $29.8 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $20.7 million investment in the stock during the quarter. The following funds were also among the new GKOS investors: Efrem Kamen’s Pura Vida Investments, D. E. Shaw’s D E Shaw, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s check out hedge fund activity in other stocks similar to Glaukos Corporation (NYSE:GKOS). We will take a look at First Financial Bancorp (NASDAQ:FFBC), Hillman Solutions Corp. (NASDAQ:HLMN), Telephone & Data Systems, Inc. (NYSE:TDS), Astra Space Inc. (NASDAQ:ASTR), D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi (NASDAQ:HEPS), Criteo SA (NASDAQ:CRTO), and Bally’s Corporation (NYSE:BALY). This group of stocks’ market values match GKOS’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FFBC | 7 | 10840 | 0 |
| HLMN | 25 | 481224 | 25 |
| TDS | 19 | 120636 | 1 |
| ASTR | 13 | 85412 | 1 |
| HEPS | 7 | 14494 | 7 |
| CRTO | 13 | 167551 | -3 |
| BALY | 28 | 422239 | -2 |
| Average | 16 | 186057 | 4.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $186 million. That figure was $176 million in GKOS’s case. Bally’s Corporation (NYSE:BALY) is the most popular stock in this table. On the other hand First Financial Bancorp (NASDAQ:FFBC) is the least popular one with only 7 bullish hedge fund positions. Glaukos Corporation (NYSE:GKOS) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GKOS is 77.1. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately GKOS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GKOS were disappointed as the stock returned -11.5% since the end of September (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 many of these stocks already outperformed the market since 2019.
Follow Glaukos Corp (NYSE:GKOS)
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Disclosure: None. This article was originally published at Insider Monkey.
