The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th. We at Insider Monkey have made an extensive database of more than 867 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Haemonetics Corporation (NYSE:HAE) based on those filings.
Is Haemonetics Corporation (NYSE:HAE) a buy here? The smart money was reducing their bets on the stock. The number of long hedge fund bets shrunk by 1 in recent months. Haemonetics Corporation (NYSE:HAE) was in 29 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 39. Our calculations also showed that HAE isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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 let’s view the fresh hedge fund action encompassing Haemonetics Corporation (NYSE:HAE).
Chuck Royce of Royce & Associates
Do Hedge Funds Think HAE 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 -3% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards HAE over the last 25 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Fisher Asset Management, managed by Ken Fisher, holds the largest position in Haemonetics Corporation (NYSE:HAE). Fisher Asset Management has a $77.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second most bullish fund manager is Chuck Royce of Royce & Associates, with a $69.5 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that are bullish comprise Israel Englander’s Millennium Management, Steven Boyd’s Armistice Capital and Carl Goldsmith and Scott Klein’s Beach Point Capital Management. In terms of the portfolio weights assigned to each position Beach Point Capital Management allocated the biggest weight to Haemonetics Corporation (NYSE:HAE), around 4.39% of its 13F portfolio. BeaconLight Capital is also relatively very bullish on the stock, dishing out 2.12 percent of its 13F equity portfolio to HAE.
Because Haemonetics Corporation (NYSE:HAE) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedgies that decided to sell off their positions entirely in the third quarter. Intriguingly, Vishal Saluja and Pham Quang’s Endurant Capital Management cut the largest stake of all the hedgies watched by Insider Monkey, worth close to $7.9 million in stock. Alec Litowitz and Ross Laser’s fund, Magnetar Capital, also dumped its stock, about $5.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 1 funds in the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Haemonetics Corporation (NYSE:HAE) but similarly valued. We will take a look at CMC Materials, Inc. (NASDAQ:CCMP), BigCommerce Holdings, Inc. (NASDAQ:BIGC), Xerox Holdings Corporation (NASDAQ:XRX), Viavi Solutions Inc (NASDAQ:VIAV), Riskified Ltd. (NYSE:RSKD), Frontdoor, inc. (NASDAQ:FTDR), and Apple Hospitality REIT Inc (NYSE:APLE). All of these stocks’ market caps are closest to HAE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CCMP | 22 | 191132 | 0 |
| BIGC | 21 | 616202 | 0 |
| XRX | 35 | 987032 | 10 |
| VIAV | 23 | 228421 | -1 |
| RSKD | 16 | 59652 | 16 |
| FTDR | 36 | 574044 | 3 |
| APLE | 15 | 186645 | -1 |
| Average | 24 | 406161 | 3.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $406 million. That figure was $443 million in HAE’s case. Frontdoor, inc. (NASDAQ:FTDR) is the most popular stock in this table. On the other hand Apple Hospitality REIT Inc (NYSE:APLE) is the least popular one with only 15 bullish hedge fund positions. Haemonetics Corporation (NYSE:HAE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HAE is 59.6. 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 HAE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HAE were disappointed as the stock returned -27.4% 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.
