Hedge Funds Have Never Been This Bullish On 1Life Healthcare, Inc. (ONEM)

Many prominent investors, including Warren Buffett, David Tepper and Stan Druckenmiller, have been cautious regarding the current bull market and missed out as the stock market reached another high in recent weeks. On the other hand, technology hedge funds weren’t timid and registered double digit market beating gains. Financials, energy and industrial stocks initially suffered the most but many of these stocks delivered strong returns since November and hedge funds actually increased their positions in these stocks. In this article we will find out how hedge fund sentiment towards 1Life Healthcare, Inc. (NASDAQ:ONEM) changed recently.

1Life Healthcare, Inc. (NASDAQ:ONEM) has seen an increase in hedge fund sentiment of late. 1Life Healthcare, Inc. (NASDAQ:ONEM) was in 33 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic was previously 30. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ONEM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Chase Coleman of Tiger Global

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. Keeping this in mind we’re going to check out the new hedge fund action encompassing 1Life Healthcare, Inc. (NASDAQ:ONEM).

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

At second quarter’s end, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from the first quarter of 2020. On the other hand, there were a total of 20 hedge funds with a bullish position in ONEM 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.

According to Insider Monkey’s hedge fund database, Chase Coleman’s Tiger Global Management LLC has the biggest position in 1Life Healthcare, Inc. (NASDAQ:ONEM), worth close to $251.9 million, comprising 0.5% of its total 13F portfolio. The second most bullish fund manager is Maverick Capital, led by Lee Ainslie, holding a $121 million position; the fund has 1.1% of its 13F portfolio invested in the stock. Some other professional money managers that hold long positions encompass Catherine D. Wood’s ARK Investment Management, Jeremy Green’s Redmile Group and Peter S. Park’s Park West Asset Management. In terms of the portfolio weights assigned to each position Sabrepoint Capital allocated the biggest weight to 1Life Healthcare, Inc. (NASDAQ:ONEM), around 2.25% of its 13F portfolio. Maverick Capital is also relatively very bullish on the stock, dishing out 1.14 percent of its 13F equity portfolio to ONEM.

Now, key money managers have been driving this bullishness. Sabrepoint Capital, managed by George Baxter, assembled the biggest position in 1Life Healthcare, Inc. (NASDAQ:ONEM). Sabrepoint Capital had $7.2 million invested in the company at the end of the quarter. Ray Dalio’s Bridgewater Associates also made a $4.6 million investment in the stock during the quarter. The other funds with brand new ONEM positions are Bhagwan Jay Rao’s Integral Health Asset Management, Mika Toikka’s AlphaCrest Capital Management, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as 1Life Healthcare, Inc. (NASDAQ:ONEM) but similarly valued. We will take a look at PDC Energy Inc (NASDAQ:PDCE), Carter’s, Inc. (NYSE:CRI), Stem, Inc. (NYSE:STEM), John Bean Technologies Corporation (NYSE:JBT), Galapagos NV (NASDAQ:GLPG), Itron, Inc. (NASDAQ:ITRI), and fuboTV Inc. (NYSE:FUBO). This group of stocks’ market caps resemble ONEM’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 21.3 hedge funds with bullish positions and the average amount invested in these stocks was $275 million. That figure was $745 million in ONEM’s case. Stem, Inc. (NYSE:STEM) is the most popular stock in this table. On the other hand Itron, Inc. (NASDAQ:ITRI) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks 1Life Healthcare, Inc. (NASDAQ:ONEM) is more popular among hedge funds. Our overall hedge fund sentiment score for ONEM 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Unfortunately ONEM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ONEM were disappointed as the stock returned -35.2% since the end of the second quarter (through 10/15) 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.