Hedge Funds Are Warming Up To Entegris Inc (ENTG)

The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Entegris Inc (NASDAQ:ENTG).

Entegris Inc (NASDAQ:ENTG) shareholders have witnessed an increase in enthusiasm from smart money in recent months. Entegris Inc (NASDAQ:ENTG) was in 25 hedge funds’ portfolios at the end of June. The all time high for this statistic is 30. There were 23 hedge funds in our database with ENTG holdings at the end of March. Our calculations also showed that ENTG isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

According to most stock holders, hedge funds are viewed as underperforming, old investment tools of years past. While there are over 8000 funds with their doors open today, Our experts look at the upper echelon of this club, about 850 funds. These investment experts orchestrate most of all hedge funds’ total capital, and by following their matchless equity investments, Insider Monkey has discovered numerous investment strategies that have historically beaten the market. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Andrew Sandler of Sandler Capital Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s go over the latest hedge fund action regarding Entegris Inc (NASDAQ:ENTG).

Do Hedge Funds Think ENTG Is A Good Stock To Buy Now?

At Q2’s end, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from one quarter earlier. On the other hand, there were a total of 28 hedge funds with a bullish position in ENTG a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).

The largest stake in Entegris Inc (NASDAQ:ENTG) was held by Select Equity Group, which reported holding $835.8 million worth of stock at the end of June. It was followed by Cantillon Capital Management with a $272.2 million position. Other investors bullish on the company included RGM Capital, Arrowstreet Capital, and Sandler Capital Management. In terms of the portfolio weights assigned to each position RGM Capital allocated the biggest weight to Entegris Inc (NASDAQ:ENTG), around 5.05% of its 13F portfolio. Select Equity Group is also relatively very bullish on the stock, setting aside 2.86 percent of its 13F equity portfolio to ENTG.

Now, specific money managers have jumped into Entegris Inc (NASDAQ:ENTG) headfirst. Bridgewater Associates, managed by Ray Dalio, initiated the biggest position in Entegris Inc (NASDAQ:ENTG). Bridgewater Associates had $1.2 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $1.1 million investment in the stock during the quarter. The other funds with brand new ENTG positions are Karim Abbadi and Edward McBride’s Centiva Capital, Charles Montanaro’s Montanaro Asset Management, and Greg Eisner’s Engineers Gate Manager.

Let’s go over hedge fund activity in other stocks similar to Entegris Inc (NASDAQ:ENTG). We will take a look at VICI Properties Inc. (NYSE:VICI), Dynatrace, Inc. (NYSE:DT), Cardinal Health, Inc. (NYSE:CAH), PTC Inc (NASDAQ:PTC), The Carlyle Group Inc (NASDAQ:CG), Brookfield Infrastructure Partners L.P. (NYSE:BIP), and Elanco Animal Health Incorporated (NYSE:ELAN). All of these stocks’ market caps are closest to ENTG’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 33.9 hedge funds with bullish positions and the average amount invested in these stocks was $1163 million. That figure was $1390 million in ENTG’s case. Dynatrace, Inc. (NYSE:DT) is the most popular stock in this table. On the other hand Brookfield Infrastructure Partners L.P. (NYSE:BIP) is the least popular one with only 16 bullish hedge fund positions. Entegris Inc (NASDAQ:ENTG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ENTG is 45.2. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on ENTG as the stock returned 11.7% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.