Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Danimer Scientific, Inc. (NYSE:DNMR), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Danimer Scientific, Inc. (NYSE:DNMR) was in 30 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 18. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. DNMR investors should be aware of an increase in enthusiasm from smart money recently. There were 18 hedge funds in our database with DNMR positions at the end of the fourth quarter. Our calculations also showed that DNMR isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Harold Levy of Iridian Asset Management
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Do Hedge Funds Think DNMR Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 67% from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in DNMR a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Danimer Scientific, Inc. (NYSE:DNMR) was held by Iridian Asset Management, which reported holding $160.8 million worth of stock at the end of December. It was followed by Greenlight Capital with a $81.3 million position. Other investors bullish on the company included Iridian Asset Management, Athanor Capital, and Chescapmanager LLC. In terms of the portfolio weights assigned to each position Greenlight Capital allocated the biggest weight to Danimer Scientific, Inc. (NYSE:DNMR), around 5.66% of its 13F portfolio. Heathbridge Capital Management is also relatively very bullish on the stock, setting aside 5.13 percent of its 13F equity portfolio to DNMR.
Consequently, some big names were breaking ground themselves. Iridian Asset Management, managed by David Cohen and Harold Levy, assembled the largest position in Danimer Scientific, Inc. (NYSE:DNMR). Iridian Asset Management had $160.8 million invested in the company at the end of the quarter. David Cohen and Harold Levy’s Iridian Asset Management also made a $53.2 million investment in the stock during the quarter. The following funds were also among the new DNMR investors: Michel Massoud’s Melqart Asset Management, Robert Richards’s Heathbridge Capital Management, and Kevin D. Eng’s Columbus Hill Capital Management.
Let’s go over hedge fund activity in other stocks similar to Danimer Scientific, Inc. (NYSE:DNMR). We will take a look at Werner Enterprises, Inc. (NASDAQ:WERN), Simmons First National Corporation (NASDAQ:SFNC), Hilton Grand Vacations Inc. (NYSE:HGV), Old National Bancorp (NYSE:ONB), Root, Inc. (NASDAQ:ROOT), Insperity Inc (NYSE:NSP), and Colony Capital Inc (NYSE:CLNY). This group of stocks’ market valuations resemble DNMR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WERN | 21 | 213603 | -3 |
| SFNC | 12 | 22164 | 6 |
| HGV | 34 | 783198 | 3 |
| ONB | 17 | 50718 | 6 |
| ROOT | 18 | 346606 | -7 |
| NSP | 20 | 226976 | -5 |
| CLNY | 25 | 592790 | 4 |
| Average | 21 | 319436 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $319 million. That figure was $533 million in DNMR’s case. Hilton Grand Vacations Inc. (NYSE:HGV) is the most popular stock in this table. On the other hand Simmons First National Corporation (NASDAQ:SFNC) is the least popular one with only 12 bullish hedge fund positions. Danimer Scientific, Inc. (NYSE:DNMR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DNMR is 80.9. 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 22.8% in 2021 through July 2nd and beat the market again by 6 percentage points. Unfortunately DNMR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DNMR were disappointed as the stock returned -29.7% since the end of March (through 7/2) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
