Here is What Hedge Funds Think About Jazz Pharmaceuticals Plc (JAZZ)

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. What do these smart investors think about Jazz Pharmaceuticals Plc (NASDAQ:JAZZ)?

Is Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) a buy here? Investors who are in the know were selling. The number of long hedge fund positions shrunk by 5 lately. Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) was in 29 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 49. Our calculations also showed that JAZZ isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 34 hedge funds in our database with JAZZ 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. With all of this in mind let’s take a peek at the recent hedge fund action encompassing Jazz Pharmaceuticals Plc (NASDAQ:JAZZ).

Bernard Horn of Polaris Capital Management

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

Heading into the fourth quarter of 2021, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards JAZZ over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Of the funds tracked by Insider Monkey, Renaissance Technologies has the biggest position in Jazz Pharmaceuticals Plc (NASDAQ:JAZZ), worth close to $260.3 million, amounting to 0.3% of its total 13F portfolio. The second most bullish fund manager is Polaris Capital Management, led by Bernard Horn, holding a $255.6 million position; the fund has 8.1% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions include Jeremy Green’s Redmile Group, Steve Cohen’s Point72 Asset Management and Farallon Capital. In terms of the portfolio weights assigned to each position Polaris Capital Management allocated the biggest weight to Jazz Pharmaceuticals Plc (NASDAQ:JAZZ), around 8.15% of its 13F portfolio. Healthcor Management LP is also relatively very bullish on the stock, earmarking 2.59 percent of its 13F equity portfolio to JAZZ.

Since Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there exists a select few hedge funds that slashed their positions entirely in the third quarter. Intriguingly, D. E. Shaw’s D E Shaw dropped the biggest stake of the 750 funds followed by Insider Monkey, worth about $44.8 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also cut its stock, about $33.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 5 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) but similarly valued. These stocks are Ciena Corporation (NYSE:CIEN), Zai Lab Limited (NASDAQ:ZLAB), FirstService Corporation (NASDAQ:FSV), WEX Inc (NYSE:WEX), Gentex Corporation (NASDAQ:GNTX), AptarGroup, Inc. (NYSE:ATR), and Cosan S.A. (NYSE:CSAN). This group of stocks’ market valuations resemble JAZZ’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 22.3 hedge funds with bullish positions and the average amount invested in these stocks was $431 million. That figure was $1230 million in JAZZ’s case. Zai Lab Limited (NASDAQ:ZLAB) is the most popular stock in this table. On the other hand Cosan S.A. (NYSE:CSAN) is the least popular one with only 5 bullish hedge fund positions. Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for JAZZ is 56.5. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 beat the market again by 5.6 percentage points. Unfortunately JAZZ wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on JAZZ were disappointed as the stock returned -7.9% since the end of September (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 many of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.