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 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Iron Mountain Incorporated (NYSE:IRM).
Is Iron Mountain Incorporated (NYSE:IRM) an attractive stock to buy now? Prominent investors are taking a bullish view. The number of long hedge fund bets moved up by 2 in recent months. Our calculations also showed that IRM isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are numerous metrics investors put to use to evaluate stocks. Two of the most innovative metrics are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the best investment managers can outpace the market by a superb amount (see the details here).
Israel Englander of Millennium Management
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we’re going to view the key hedge fund action surrounding Iron Mountain Incorporated (NYSE:IRM).
How have hedgies been trading Iron Mountain Incorporated (NYSE:IRM)?
At Q1’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from the fourth quarter of 2019. Below, you can check out the change in hedge fund sentiment towards IRM over the last 18 quarters. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions).
Among these funds, Millennium Management held the most valuable stake in Iron Mountain Incorporated (NYSE:IRM), which was worth $14.5 million at the end of the third quarter. On the second spot was Two Sigma Advisors which amassed $12.8 million worth of shares. Citadel Investment Group, Adage Capital Management, and Arrowstreet Capital 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 AlphaCrest Capital Management allocated the biggest weight to Iron Mountain Incorporated (NYSE:IRM), around 0.16% of its 13F portfolio. Neo Ivy Capital is also relatively very bullish on the stock, designating 0.15 percent of its 13F equity portfolio to IRM.
As one would reasonably expect, specific money managers were leading the bulls’ herd. Millennium Management, managed by Israel Englander, assembled the most valuable position in Iron Mountain Incorporated (NYSE:IRM). Millennium Management had $14.5 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $2.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Michael Gelband’s ExodusPoint Capital, and Ray Dalio’s Bridgewater Associates.
Let’s now take a look at hedge fund activity in other stocks similar to Iron Mountain Incorporated (NYSE:IRM). These stocks are NRG Energy Inc (NYSE:NRG), Americold Realty Trust (NYSE:COLD), Mobile TeleSystems OJSC (NYSE:MBT), and Mellanox Technologies, Ltd. (NASDAQ:MLNX). This group of stocks’ market valuations are similar to IRM’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NRG | 38 | 859890 | -4 |
| COLD | 25 | 275635 | -1 |
| MBT | 9 | 377645 | -4 |
| MLNX | 44 | 1873688 | 5 |
| Average | 29 | 846715 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $847 million. That figure was $49 million in IRM’s case. Mellanox Technologies, Ltd. (NASDAQ:MLNX) is the most popular stock in this table. On the other hand Mobile TeleSystems OJSC (NYSE:MBT) is the least popular one with only 9 bullish hedge fund positions. Iron Mountain Incorporated (NYSE:IRM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd and surpassed the market by 15.9 percentage points. Unfortunately IRM wasn’t nearly as popular as these 10 stocks (hedge fund sentiment was quite bearish); IRM investors were disappointed as the stock returned 10.7% during the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.
