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 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA).
Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) investors should pay attention to an increase in enthusiasm from smart money of late. Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 13. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that IEA isn’t among the 30 most popular stocks among hedge funds (click for Q2 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. With all of this in mind we’re going to go over the new hedge fund action regarding Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA).
Do Hedge Funds Think IEA Is A Good Stock To Buy Now?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 110% from the previous quarter. The graph below displays the number of hedge funds with bullish position in IEA over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) was held by Park West Asset Management, which reported holding $26.6 million worth of stock at the end of September. It was followed by Point72 Asset Management with a $14.7 million position. Other investors bullish on the company included Covalis Capital, Royce & Associates, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Covalis Capital allocated the biggest weight to Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA), around 2.33% of its 13F portfolio. Yaupon Capital is also relatively very bullish on the stock, designating 0.95 percent of its 13F equity portfolio to IEA.
As industrywide interest jumped, key hedge funds have been driving this bullishness. Covalis Capital, managed by Zilvinas Mecelis, initiated the most outsized position in Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA). Covalis Capital had $10.1 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also initiated a $5 million position during the quarter. The other funds with brand new IEA positions are Till Bechtolsheimer’s Arosa Capital Management, Louis Bacon’s Moore Global Investments, and Howard Marks’s Oaktree Capital Management.
Let’s go over hedge fund activity in other stocks similar to Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA). These stocks are Greenwich LifeSciences, Inc. (NASDAQ:GLSI), SciPlay Corporation (NASDAQ:SCPL), Zepp Health Corporation (NYSE:ZEPP), Rekor Systems, Inc. (NASDAQ:REKR), Bit Digital, Inc. (NASDAQ:BTBT), Akebia Therapeutics Inc (NASDAQ:AKBA), and Fluidigm Corporation (NASDAQ:FLDM). This group of stocks’ market valuations resemble IEA’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GLSI | 1 | 590 | 1 |
| SCPL | 23 | 206164 | 6 |
| ZEPP | 2 | 805 | 0 |
| REKR | 8 | 31630 | -5 |
| BTBT | 4 | 69218 | -3 |
| AKBA | 12 | 49104 | -2 |
| FLDM | 17 | 118668 | 2 |
| Average | 9.6 | 68026 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.6 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $98 million in IEA’s case. SciPlay Corporation (NASDAQ:SCPL) is the most popular stock in this table. On the other hand Greenwich LifeSciences, Inc. (NASDAQ:GLSI) is the least popular one with only 1 bullish hedge fund positions. Infrastructure and Energy Alternatives, Inc. (NASDAQ:IEA) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for IEA is 85.5. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately IEA wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on IEA were disappointed as the stock returned -19.5% since the end of September (through 12/31) 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 Infrastructure & Energy Alternatives Inc. (NASDAQ:IEA)
Follow Infrastructure & Energy Alternatives Inc. (NASDAQ:IEA)
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Disclosure: None. This article was originally published at Insider Monkey.
