The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards Ichor Holdings Ltd. (NASDAQ:ICHR).
Is Ichor Holdings Ltd. (NASDAQ:ICHR) the right investment to pursue these days? Money managers were becoming more confident. The number of bullish hedge fund bets increased by 2 in recent months. Ichor Holdings Ltd. (NASDAQ:ICHR) was in 22 hedge funds’ portfolios at the end of September. The all time high for this statistic is 24. Our calculations also showed that ICHR isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 20 hedge funds in our database with ICHR positions at the end of the second quarter.
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. Keeping this in mind let’s analyze the key hedge fund action encompassing Ichor Holdings Ltd. (NASDAQ:ICHR).
Paul Marshall of Marshall Wace
Do Hedge Funds Think ICHR Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. On the other hand, there were a total of 13 hedge funds with a bullish position in ICHR a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Point72 Asset Management was the largest shareholder of Ichor Holdings Ltd. (NASDAQ:ICHR), with a stake worth $23.6 million reported as of the end of September. Trailing Point72 Asset Management was Royce & Associates, which amassed a stake valued at $21.4 million. Two Sigma Advisors, Fisher Asset Management, and Renaissance Technologies 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 Factorial Partners allocated the biggest weight to Ichor Holdings Ltd. (NASDAQ:ICHR), around 0.3% of its 13F portfolio. Royce & Associates is also relatively very bullish on the stock, earmarking 0.16 percent of its 13F equity portfolio to ICHR.
As industrywide interest jumped, key money managers have been driving this bullishness. Fisher Asset Management, managed by Ken Fisher, initiated the largest position in Ichor Holdings Ltd. (NASDAQ:ICHR). Fisher Asset Management had $7.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $2.2 million position during the quarter. The following funds were also among the new ICHR investors: Paul Tudor Jones’s Tudor Investment Corp, D. E. Shaw’s D E Shaw, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s check out hedge fund activity in other stocks similar to Ichor Holdings Ltd. (NASDAQ:ICHR). These stocks are Donnelley Financial Solutions, Inc. (NYSE:DFIN), Innoviva, Inc. (NASDAQ:INVA), S & T Bancorp Inc (NASDAQ:STBA), Krystal Biotech, Inc. (NASDAQ:KRYS), Five Point Holdings, LLC (NYSE:FPH), Velodyne Lidar, Inc. (NASDAQ:VLDR), and Forma Therapeutics Holdings, Inc. (NASDAQ:FMTX). This group of stocks’ market valuations resemble ICHR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DFIN | 21 | 168678 | 1 |
| INVA | 18 | 292175 | 4 |
| STBA | 7 | 4798 | 4 |
| KRYS | 13 | 222807 | 4 |
| FPH | 8 | 242437 | -3 |
| VLDR | 13 | 12818 | -5 |
| FMTX | 16 | 508351 | 3 |
| Average | 13.7 | 207438 | 1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.7 hedge funds with bullish positions and the average amount invested in these stocks was $207 million. That figure was $84 million in ICHR’s case. Donnelley Financial Solutions, Inc. (NYSE:DFIN) is the most popular stock in this table. On the other hand S & T Bancorp Inc (NASDAQ:STBA) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Ichor Holdings Ltd. (NASDAQ:ICHR) is more popular among hedge funds. Our overall hedge fund sentiment score for ICHR is 84.5. 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 returned 29.6% in 2021 and managed to beat the market by 3.6 percentage points. Hedge funds were also right about betting on ICHR as the stock returned 12% since the end of September (through 12/31) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Ichor Holdings Ltd. (NASDAQ:ICHR)
Follow Ichor Holdings Ltd. (NASDAQ:ICHR)
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Disclosure: None. This article was originally published at Insider Monkey.
