The Insider Monkey team has completed processing the quarterly 13F filings for the September 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 Hill-Rom Holdings, Inc. (NYSE:HRC).
Hill-Rom Holdings, Inc. (NYSE:HRC) was in 46 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 34. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. HRC investors should be aware of an increase in support from the world’s most elite money managers of late. There were 22 hedge funds in our database with HRC positions at the end of the second quarter. Our calculations also showed that HRC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Matthew Halbower of Pentwater Capital
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. Now let’s take a glance at the fresh hedge fund action surrounding Hill-Rom Holdings, Inc. (NYSE:HRC).
Do Hedge Funds Think HRC Is A Good Stock To Buy Now?
At third quarter’s end, a total of 46 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 109% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards HRC over the last 25 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Pentwater Capital Management held the most valuable stake in Hill-Rom Holdings, Inc. (NYSE:HRC), which was worth $277.5 million at the end of the third quarter. On the second spot was Alpine Associates which amassed $182.4 million worth of shares. Magnetar Capital, Millennium Management, and Soros Fund Management 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 Alpine Associates allocated the biggest weight to Hill-Rom Holdings, Inc. (NYSE:HRC), around 5.92% of its 13F portfolio. Havens Advisors is also relatively very bullish on the stock, setting aside 4.32 percent of its 13F equity portfolio to HRC.
Now, specific money managers have jumped into Hill-Rom Holdings, Inc. (NYSE:HRC) headfirst. Pentwater Capital Management, managed by Matthew Halbower, assembled the biggest position in Hill-Rom Holdings, Inc. (NYSE:HRC). Pentwater Capital Management had $277.5 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also initiated a $182.4 million position during the quarter. The following funds were also among the new HRC investors: George Soros’s Soros Fund Management, Clint Carlson’s Carlson Capital, and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Hill-Rom Holdings, Inc. (NYSE:HRC) but similarly valued. We will take a look at Intellia Therapeutics, Inc. (NASDAQ:NTLA), Levi Strauss & Co. (NYSE:LEVI), Chegg Inc (NYSE:CHGG), Hubbell Incorporated (NYSE:HUBB), Wynn Resorts, Limited (NASDAQ:WYNN), CubeSmart (NYSE:CUBE), and Penumbra Inc (NYSE:PEN). This group of stocks’ market valuations resemble HRC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NTLA | 37 | 1620289 | -4 |
| LEVI | 26 | 225120 | -4 |
| CHGG | 39 | 514158 | 1 |
| HUBB | 18 | 571249 | 3 |
| WYNN | 32 | 282672 | -5 |
| CUBE | 22 | 225467 | 4 |
| PEN | 33 | 553799 | 3 |
| Average | 29.6 | 570393 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29.6 hedge funds with bullish positions and the average amount invested in these stocks was $570 million. That figure was $1410 million in HRC’s case. Chegg Inc (NYSE:CHGG) is the most popular stock in this table. On the other hand Hubbell Incorporated (NYSE:HUBB) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Hill-Rom Holdings, Inc. (NYSE:HRC) is more popular among hedge funds. Our overall hedge fund sentiment score for HRC is 90. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately HRC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HRC were disappointed as the stock returned 3.7% since the end of the third quarter (through 11/30) 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.
Follow Hill-Rom Holdings Inc. (NYSE:HRC)
Follow Hill-Rom Holdings Inc. (NYSE:HRC)
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Disclosure: None. This article was originally published at Insider Monkey.
