Is Amicus Therapeutics, Inc. (FOLD) A Good Stock To Buy?

After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of June 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Amicus Therapeutics, Inc. (NASDAQ:FOLD).

Is Amicus Therapeutics, Inc. (NASDAQ:FOLD) a buy, sell, or hold? Money managers were getting more optimistic. The number of long hedge fund bets rose by 4 lately. Amicus Therapeutics, Inc. (NASDAQ:FOLD) was in 34 hedge funds’ portfolios at the end of June. The all time high for this statistic is 38. Our calculations also showed that FOLD isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the 21st century investor’s toolkit there are dozens of indicators investors employ to grade stocks. A couple of the less known indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the market by a superb margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, we like undervalued, EBITDA-positive growth stocks, so we are checking out stock pitches like this emerging biotech stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to take a gander at the key hedge fund action encompassing Amicus Therapeutics, Inc. (NASDAQ:FOLD).

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

Heading into the third quarter of 2021, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of 13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards FOLD over the last 24 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.

More specifically, Perceptive Advisors was the largest shareholder of Amicus Therapeutics, Inc. (NASDAQ:FOLD), with a stake worth $222.9 million reported as of the end of June. Trailing Perceptive Advisors was Redmile Group, which amassed a stake valued at $200.5 million. Avoro Capital Advisors (venBio Select Advisor), Palo Alto Investors, and Point72 Asset 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 Palo Alto Investors allocated the biggest weight to Amicus Therapeutics, Inc. (NASDAQ:FOLD), around 5.31% of its 13F portfolio. Burrage Capital Management is also relatively very bullish on the stock, designating 4.83 percent of its 13F equity portfolio to FOLD.

Now, key money managers have been driving this bullishness. Great Point Partners, managed by Jeffrey Jay and David Kroin, established the biggest position in Amicus Therapeutics, Inc. (NASDAQ:FOLD). Great Point Partners had $15.4 million invested in the company at the end of the quarter. Bhagwan Jay Rao’s Integral Health Asset Management also made a $9.2 million investment in the stock during the quarter. The other funds with brand new FOLD positions are Efrem Kamen’s Pura Vida Investments, Christiana Goh Bardon’s Burrage Capital Management, and Sander Gerber’s Hudson Bay Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Amicus Therapeutics, Inc. (NASDAQ:FOLD). We will take a look at BRP Group, Inc. (NASDAQ:BRP), Domo Inc. (NASDAQ:DOMO), Liberty Oilfield Services Inc. (NYSE:LBRT), Green Dot Corporation (NYSE:GDOT), Cedar Fair, L.P. (NYSE:FUN), Grupo Aeroportuario del Centro Nort (NASDAQ:OMAB), and Live Oak Bancshares Inc (NASDAQ:LOB). This group of stocks’ market valuations are closest to FOLD’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.4 hedge funds with bullish positions and the average amount invested in these stocks was $184 million. That figure was $833 million in FOLD’s case. Domo Inc. (NASDAQ:DOMO) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Centro Nort (NASDAQ:OMAB) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Amicus Therapeutics, Inc. (NASDAQ:FOLD) is more popular among hedge funds. Our overall hedge fund sentiment score for FOLD is 85.8. 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 21.8% in 2021 through October 11th but still managed to beat the market by 4.4 percentage points. Hedge funds were also right about betting on FOLD as the stock returned 21.1% since the end of June (through 10/11) 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.

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

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