A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended December 31st, so let’s proceed with the discussion of the hedge fund sentiment on Amkor Technology, Inc. (NASDAQ:AMKR).
Is AMKR stock a buy? Amkor Technology, Inc. (NASDAQ:AMKR) was in 24 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 29. AMKR investors should pay attention to a decrease in enthusiasm from smart money lately. There were 27 hedge funds in our database with AMKR positions at the end of the third quarter. Our calculations also showed that AMKR isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).
In the financial world there are a multitude of signals investors use to size up their holdings. A couple of the most useful signals are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the elite fund managers can trounce the broader indices by a healthy amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 197% since March 2017 (through March 2021) and beat the S&P 500 Index by 124 percentage points. You can download a sample issue of this newsletter on our website .
Israel Englander of Millennium Management
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, auto parts business is a recession resistant business, so we are taking a closer look at this discount auto parts stock that is growing at a 196% annualized rate. We go through lists like the 15 best micro-cap stocks to buy now to identify the next stock with 10x upside potential. 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 website. Keeping this in mind let’s check out the latest hedge fund action encompassing Amkor Technology, Inc. (NASDAQ:AMKR).
Do Hedge Funds Think AMKR Is A Good Stock To Buy Now?
At Q4’s end, a total of 24 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from the previous quarter. On the other hand, there were a total of 29 hedge funds with a bullish position in AMKR a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the number one position in Amkor Technology, Inc. (NASDAQ:AMKR), worth close to $36.4 million, accounting for 0.1% of its total 13F portfolio. Coming in second is Royce & Associates, led by Chuck Royce, holding a $17.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish encompass Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors. In terms of the portfolio weights assigned to each position Verdad Advisers allocated the biggest weight to Amkor Technology, Inc. (NASDAQ:AMKR), around 1.85% of its 13F portfolio. Shellback Capital is also relatively very bullish on the stock, designating 1.29 percent of its 13F equity portfolio to AMKR.
Since Amkor Technology, Inc. (NASDAQ:AMKR) has experienced falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that decided to sell off their full holdings by the end of the fourth quarter. Interestingly, Lee Ainslie’s Maverick Capital cut the largest stake of all the hedgies tracked by Insider Monkey, worth an estimated $0.8 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund cut about $0.5 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 3 funds by the end of the fourth quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Amkor Technology, Inc. (NASDAQ:AMKR) but similarly valued. These stocks are Hudson Pacific Properties Inc (NYSE:HPP), STAAR Surgical Company (NASDAQ:STAA), PS Business Parks Inc (NYSE:PSB), Stantec Inc. (NYSE:STN), SVMK Inc. (NASDAQ:SVMK), Mimecast Limited (NASDAQ:MIME), and WD-40 Company (NASDAQ:WDFC). All of these stocks’ market caps are similar to AMKR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HPP | 22 | 210720 | 5 |
| STAA | 17 | 1141766 | 4 |
| PSB | 15 | 77256 | -2 |
| STN | 7 | 78050 | -1 |
| SVMK | 32 | 325511 | -1 |
| MIME | 28 | 135180 | 3 |
| WDFC | 15 | 174748 | -2 |
| Average | 19.4 | 306176 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.4 hedge funds with bullish positions and the average amount invested in these stocks was $306 million. That figure was $133 million in AMKR’s case. SVMK Inc. (NASDAQ:SVMK) is the most popular stock in this table. On the other hand Stantec Inc. (NYSE:STN) is the least popular one with only 7 bullish hedge fund positions. Amkor Technology, Inc. (NASDAQ:AMKR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AMKR is 60.8. 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 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 12.3% in 2021 through April 19th and still beat the market by 0.9 percentage points. Hedge funds were also right about betting on AMKR as the stock returned 55.4% since the end of Q4 (through 4/19) 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.
