The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of September 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Inari Medical, Inc. (NASDAQ:NARI).
Inari Medical, Inc. (NASDAQ:NARI) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 30. NARI has seen a decrease in enthusiasm from smart money of late. There were 30 hedge funds in our database with NARI holdings at the end of June. Our calculations also showed that NARI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Noam Gottesman of GLG Partners
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 check out the recent hedge fund action surrounding Inari Medical, Inc. (NASDAQ:NARI).
Do Hedge Funds Think NARI Is A Good Stock To Buy Now?
At Q3’s end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of -23% from the second quarter of 2021. On the other hand, there were a total of 14 hedge funds with a bullish position in NARI a year ago. 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, Darsana Capital Partners was the largest shareholder of Inari Medical, Inc. (NASDAQ:NARI), with a stake worth $115.7 million reported as of the end of September. Trailing Darsana Capital Partners was Sectoral Asset Management, which amassed a stake valued at $23.5 million. Millennium Management, GLG Partners, and Balyasny 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 Darsana Capital Partners allocated the biggest weight to Inari Medical, Inc. (NASDAQ:NARI), around 3.81% of its 13F portfolio. Sectoral Asset Management is also relatively very bullish on the stock, setting aside 1.95 percent of its 13F equity portfolio to NARI.
Since Inari Medical, Inc. (NASDAQ:NARI) has witnessed falling interest from hedge fund managers, logic holds that there lies a certain “tier” of money managers that elected to cut their full holdings in the third quarter. It’s worth mentioning that Joseph Edelman’s Perceptive Advisors cut the largest stake of the “upper crust” of funds followed by Insider Monkey, worth close to $29 million in stock. Ryan Tolkin (CIO)’s fund, Schonfeld Strategic Advisors, also dropped its stock, about $8.5 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 7 funds in the third quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Inari Medical, Inc. (NASDAQ:NARI) but similarly valued. We will take a look at Apollo Medical Holdings, Inc. (NASDAQ:AMEH), Cohen & Steers, Inc. (NYSE:CNS), Merit Medical Systems, Inc. (NASDAQ:MMSI), Schneider National, Inc. (NYSE:SNDR), ViaSat, Inc. (NASDAQ:VSAT), UniFirst Corp (NYSE:UNF), and Atkore International Group Inc. (NYSE:ATKR). This group of stocks’ market valuations resemble NARI’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AMEH | 11 | 23747 | 4 |
| CNS | 13 | 93214 | -1 |
| MMSI | 23 | 406515 | 1 |
| SNDR | 22 | 143382 | 2 |
| VSAT | 18 | 1358192 | -4 |
| UNF | 14 | 37360 | 0 |
| ATKR | 26 | 243027 | 1 |
| Average | 18.1 | 329348 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.1 hedge funds with bullish positions and the average amount invested in these stocks was $329 million. That figure was $238 million in NARI’s case. Atkore International Group Inc. (NYSE:ATKR) is the most popular stock in this table. On the other hand Apollo Medical Holdings, Inc. (NASDAQ:AMEH) is the least popular one with only 11 bullish hedge fund positions. Inari Medical, Inc. (NASDAQ:NARI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NARI is 61. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately NARI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NARI were disappointed as the stock returned -1.3% since the end of September (through 12/9) 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.
Follow Inari Medical Inc. (NASDAQ:NARI)
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Disclosure: None. This article was originally published at Insider Monkey.
