With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter of 2021. One of these stocks was SailPoint Technologies Holdings, Inc. (NYSE:SAIL).
Is SailPoint Technologies Holdings, Inc. (NYSE:SAIL) a buy right now? Money managers were in a bullish mood. The number of bullish hedge fund positions went up by 1 lately. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) was in 24 hedge funds’ portfolios at the end of September. The all time high for this statistic is 32. Our calculations also showed that SAIL isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 23 hedge funds in our database with SAIL positions at the end of the second quarter.
Ricky Sandler of Eminence 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 we’re going to take a peek at the recent hedge fund action encompassing SailPoint Technologies Holdings, Inc. (NYSE:SAIL).
Do Hedge Funds Think SAIL Is A Good Stock To Buy Now?
At third quarter’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in SAIL over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, HMI Capital was the largest shareholder of SailPoint Technologies Holdings, Inc. (NYSE:SAIL), with a stake worth $377.2 million reported as of the end of September. Trailing HMI Capital was SoMa Equity Partners, which amassed a stake valued at $227.3 million. RGM Capital, Eminence Capital, and Jeneq 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 HMI Capital allocated the biggest weight to SailPoint Technologies Holdings, Inc. (NYSE:SAIL), around 11.31% of its 13F portfolio. Jeneq Management is also relatively very bullish on the stock, dishing out 6.79 percent of its 13F equity portfolio to SAIL.
Consequently, specific money managers have been driving this bullishness. Woodline Partners, managed by Michael Rockefeller and KarláKroeker, created the most outsized position in SailPoint Technologies Holdings, Inc. (NYSE:SAIL). Woodline Partners had $8.1 million invested in the company at the end of the quarter. Thomas Lee’s Lee Capital Management also made a $3 million investment in the stock during the quarter. The other funds with brand new SAIL positions are Jinghua Yan’s TwinBeech Capital, Dmitry Balyasny’s Balyasny Asset Management, and Greg Eisner’s Engineers Gate Manager.
Let’s now review hedge fund activity in other stocks similar to SailPoint Technologies Holdings, Inc. (NYSE:SAIL). These stocks are Black Hills Corporation (NYSE:BKH), WNS (Holdings) Limited (NYSE:WNS), Grand Canyon Education Inc (NASDAQ:LOPE), Skillz Inc. (NYSE:SKLZ), Southwest Gas Holdings, Inc. (NYSE:SWX), Korn Ferry (NYSE:KFY), and Broadstone Net Lease, Inc. (NYSE:BNL). All of these stocks’ market caps resemble SAIL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BKH | 16 | 55963 | 2 |
| WNS | 21 | 220763 | 1 |
| LOPE | 15 | 135496 | -10 |
| SKLZ | 18 | 432232 | -2 |
| SWX | 10 | 161665 | -9 |
| KFY | 25 | 300981 | 4 |
| BNL | 7 | 16903 | -5 |
| Average | 16 | 189143 | -2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $189 million. That figure was $959 million in SAIL’s case. Korn Ferry (NYSE:KFY) is the most popular stock in this table. On the other hand Broadstone Net Lease, Inc. (NYSE:BNL) is the least popular one with only 7 bullish hedge fund positions. SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for SAIL is 75.7. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on SAIL as the stock returned 11.3% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Sailpoint Technologies Holdings Inc. (NYSE:SAIL)
Follow Sailpoint Technologies Holdings Inc. (NYSE:SAIL)
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Disclosure: None. This article was originally published at Insider Monkey.
