Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is MDRX a good stock to buy? Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 31. There were 23 hedge funds in our database with MDRX holdings at the end of June. Our calculations also showed that MDRX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Michael Gelband of ExodusPoint 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. With all of this in mind we’re going to view the latest hedge fund action regarding Allscripts Healthcare Solutions Inc (NASDAQ:MDRX).
Do Hedge Funds Think MDRX 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 bullish on this stock, a change of 4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards MDRX over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) was held by Fisher Asset Management, which reported holding $74.9 million worth of stock at the end of September. It was followed by D E Shaw with a $60.7 million position. Other investors bullish on the company included Arrowstreet Capital, Millennium Management, and Tamarack Capital Management. In terms of the portfolio weights assigned to each position Tamarack Capital Management allocated the biggest weight to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), around 2.43% of its 13F portfolio. Quantinno Capital is also relatively very bullish on the stock, setting aside 0.35 percent of its 13F equity portfolio to MDRX.
As aggregate interest increased, key money managers were leading the bulls’ herd. ExodusPoint Capital, managed by Michael Gelband, initiated the largest position in Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). ExodusPoint Capital had $3.1 million invested in the company at the end of the quarter. Jinghua Yan’s TwinBeech Capital also made a $1.3 million investment in the stock during the quarter. The other funds with brand new MDRX positions are Greg Eisner’s Engineers Gate Manager, Noam Gottesman’s GLG Partners, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s also examine hedge fund activity in other stocks similar to Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). We will take a look at Avaya Holdings Corp. (NYSE:AVYA), Alamo Group, Inc. (NYSE:ALG), Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM), Industrial Logistics Properties Trust (NASDAQ:ILPT), Lindsay Corporation (NYSE:LNN), PAR Technology Corporation (NYSE:PAR), and Horace Mann Educators Corporation (NYSE:HMN). This group of stocks’ market valuations resemble MDRX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AVYA | 25 | 271469 | -12 |
| ALG | 7 | 200059 | -3 |
| HYFM | 11 | 51190 | -4 |
| ILPT | 11 | 19800 | 5 |
| LNN | 16 | 204475 | 2 |
| PAR | 23 | 465807 | 6 |
| HMN | 10 | 24626 | -5 |
| Average | 14.7 | 176775 | -1.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.7 hedge funds with bullish positions and the average amount invested in these stocks was $177 million. That figure was $212 million in MDRX’s case. Avaya Holdings Corp. (NYSE:AVYA) is the most popular stock in this table. On the other hand Alamo Group, Inc. (NYSE:ALG) is the least popular one with only 7 bullish hedge fund positions. Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MDRX is 76.4. 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 MDRX as the stock returned 31.5% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
