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 Organon & Co. (NYSE:OGN).
Is OGN a good stock to buy? Prominent investors were turning bullish. The number of long hedge fund bets stood at 35 lately. Organon & Co. (NYSE:OGN) was in 35 hedge funds’ portfolios at the end of September. Our calculations also showed that OGN 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. Keeping this in mind let’s take a gander at the new hedge fund action regarding Organon & Co. (NYSE:OGN).
Do Hedge Funds Think OGN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 35 from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards OGN over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, AQR Capital Management held the most valuable stake in Organon & Co. (NYSE:OGN) , which was worth $71.2 million at the end of the third quarter. On the second spot was Arrowstreet Capital which amassed $37 million worth of shares. D E Shaw, Glenview Capital, and Impax 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 Venator Management LLC allocated the biggest weight to Organon & Co. (NYSE:OGN) , around 3.6% of its 13F portfolio. Beddow Capital Management is also relatively very bullish on the stock, dishing out 1.88 percent of its 13F equity portfolio to OGN.
Consequently, some big names have jumped into Organon & Co. (NYSE:OGN) headfirst. Glenview Capital, managed by Larry Robbins, assembled the most valuable position in Organon & Co. (NYSE:OGN) . Glenview Capital had $24.7 million invested in the company at the end of the quarter. Bill Miller’s Miller Value Partners also initiated a $5.1 million position during the quarter. The other funds with brand new OGN positions are Michael Gelband’s ExodusPoint Capital and Peter Algert’s Algert Global.
Let’s now review hedge fund activity in other stocks similar to Organon & Co. (NYSE:OGN) . These stocks are Ternium S.A. (NYSE:TX), United Therapeutics Corporation (NASDAQ:UTHR), AGNC Investment Corp. (NASDAQ:AGNC), First Citizens BancShares Inc. (NASDAQ:FCNCA), The New York Times Company (NYSE:NYT), Huaneng Power International Inc (NYSE:HNP), and Vistra Corp. (NYSE:VST). This group of stocks’ market caps are similar to OGN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TX | 18 | 239719 | 3 |
| UTHR | 52 | 2177654 | 7 |
| AGNC | 16 | 81493 | -3 |
| FCNCA | 24 | 819665 | 3 |
| NYT | 45 | 2431038 | -3 |
| HNP | 4 | 5801 | 0 |
| VST | 38 | 1221296 | 6 |
| Average | 28.1 | 996667 | 1.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 28.1 hedge funds with bullish positions and the average amount invested in these stocks was $997 million. That figure was $332 million in OGN’s case. United Therapeutics Corporation (NASDAQ:UTHR) is the most popular stock in this table. On the other hand Huaneng Power International Inc (NYSE:HNP) is the least popular one with only 4 bullish hedge fund positions. Organon & Co. (NYSE:OGN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for OGN is 61.7. 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 OGN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on OGN were disappointed as the stock returned -10.1% 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.
