The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Integer Holdings Corporation (NYSE:ITGR) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Integer Holdings Corporation (NYSE:ITGR) has seen a decrease in activity from the world’s largest hedge funds in recent months. Integer Holdings Corporation (NYSE:ITGR) was in 22 hedge funds’ portfolios at the end of September. The all time high for this statistic is 29. Our calculations also showed that ITGR isn’t among the 30 most popular stocks among hedge funds (click for Q2 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 take a look at the new hedge fund action encompassing Integer Holdings Corporation (NYSE:ITGR).
Justin John Ferayorni of Tamarack Capital Management
Do Hedge Funds Think ITGR Is A Good Stock To Buy Now?
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ITGR over the last 25 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
More specifically, Fisher Asset Management was the largest shareholder of Integer Holdings Corporation (NYSE:ITGR), with a stake worth $48.8 million reported as of the end of September. Trailing Fisher Asset Management was Hawk Ridge Management, which amassed a stake valued at $37.2 million. Tamarack Capital Management, Millennium Management, and Kent Lake Capital 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 Tamarack Capital Management allocated the biggest weight to Integer Holdings Corporation (NYSE:ITGR), around 3.53% of its 13F portfolio. Kent Lake Capital is also relatively very bullish on the stock, dishing out 3.07 percent of its 13F equity portfolio to ITGR.
Because Integer Holdings Corporation (NYSE:ITGR) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedge funds who sold off their entire stakes in the third quarter. Intriguingly, Matthew Stadelman’s Diamond Hill Capital dumped the biggest position of the 750 funds monitored by Insider Monkey, comprising about $26.2 million in stock. Donald Sussman’s fund, Paloma Partners, also dropped its stock, about $0.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 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 Integer Holdings Corporation (NYSE:ITGR) but similarly valued. These stocks are Graham Holdings Co (NYSE:GHC), Pebblebrook Hotel Trust (NYSE:PEB), Terex Corporation (NYSE:TEX), Ultrapar Participacoes SA (NYSE:UGP), Patterson Companies, Inc. (NASDAQ:PDCO), Verint Systems Inc. (NASDAQ:VRNT), and Relay Therapeutics, Inc. (NASDAQ:RLAY). This group of stocks’ market caps are closest to ITGR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GHC | 24 | 457538 | 1 |
| PEB | 17 | 63913 | 0 |
| TEX | 25 | 358521 | -2 |
| UGP | 5 | 8393 | -5 |
| PDCO | 21 | 151269 | -2 |
| VRNT | 25 | 708338 | -5 |
| RLAY | 18 | 443758 | 1 |
| Average | 19.3 | 313104 | -1.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.3 hedge funds with bullish positions and the average amount invested in these stocks was $313 million. That figure was $152 million in ITGR’s case. Terex Corporation (NYSE:TEX) is the most popular stock in this table. On the other hand Ultrapar Participacoes SA (NYSE:UGP) is the least popular one with only 5 bullish hedge fund positions. Integer Holdings Corporation (NYSE:ITGR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ITGR is 69.3. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately ITGR wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ITGR were disappointed as the stock returned -4.2% since the end of September (through 12/31) 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 Integer Holdings Corp (NYSE:ITGR)
Follow Integer Holdings Corp (NYSE:ITGR)
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Disclosure: None. This article was originally published at Insider Monkey.
