A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Charles River Laboratories International Inc. (NYSE:CRL).
Charles River Laboratories International Inc. (NYSE:CRL) has seen an increase in enthusiasm from smart money recently. Charles River Laboratories International Inc. (NYSE:CRL) was in 44 hedge funds’ portfolios at the end of June. The all time high for this statistic is 43. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CRL isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Louis Navellier of Navellier & Associates
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Do Hedge Funds Think CRL Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 44 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from one quarter earlier. On the other hand, there were a total of 41 hedge funds with a bullish position in CRL a year ago. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
More specifically, Viking Global was the largest shareholder of Charles River Laboratories International Inc. (NYSE:CRL), with a stake worth $130.2 million reported as of the end of June. Trailing Viking Global was Marshall Wace LLP, which amassed a stake valued at $104.6 million. Citadel Investment Group, Fisher Asset Management, and Ariel Investments 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 Tower House Partners allocated the biggest weight to Charles River Laboratories International Inc. (NYSE:CRL), around 23.73% of its 13F portfolio. Iron Triangle Partners is also relatively very bullish on the stock, setting aside 5.64 percent of its 13F equity portfolio to CRL.
As aggregate interest increased, some big names were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, assembled the most outsized position in Charles River Laboratories International Inc. (NYSE:CRL). Alyeska Investment Group had $22.6 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $20.5 million investment in the stock during the quarter. The following funds were also among the new CRL investors: Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, Louis Navellier’s Navellier & Associates, and Andrew Weiss’s Weiss Asset Management.
Let’s now take a look at hedge fund activity in other stocks similar to Charles River Laboratories International Inc. (NYSE:CRL). We will take a look at Warner Music Group Corp. (NASDAQ:WMG), Shinhan Financial Group Co., Ltd. (NYSE:SHG), Incyte Corporation (NASDAQ:INCY), Ally Financial Inc (NYSE:ALLY), SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), Tyler Technologies, Inc. (NYSE:TYL), and Catalent Inc (NYSE:CTLT). This group of stocks’ market values resemble CRL’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WMG | 29 | 793609 | 2 |
| SHG | 5 | 31985 | -1 |
| INCY | 34 | 3644056 | 2 |
| ALLY | 54 | 2432402 | 3 |
| SSNC | 49 | 2568906 | -5 |
| TYL | 33 | 731035 | 5 |
| CTLT | 40 | 870986 | 11 |
| Average | 34.9 | 1581854 | 2.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 34.9 hedge funds with bullish positions and the average amount invested in these stocks was $1582 million. That figure was $1218 million in CRL’s case. Ally Financial Inc (NYSE:ALLY) is the most popular stock in this table. On the other hand Shinhan Financial Group Co., Ltd. (NYSE:SHG) is the least popular one with only 5 bullish hedge fund positions. Charles River Laboratories International Inc. (NYSE:CRL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CRL is 76.8. 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 22.9% in 2021 through October 1st and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on CRL as the stock returned 12.6% since the end of Q2 (through 10/1) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Charles River Laboratories International Inc. (NYSE:CRL)
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Disclosure: None. This article was originally published at Insider Monkey.
