In this article we are going to use hedge fund sentiment as a tool and determine whether Orgenesis Inc. (NASDAQ:ORGS) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
Is ORGS a good stock to buy? Orgenesis Inc. (NASDAQ:ORGS) shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. Orgenesis Inc. (NASDAQ:ORGS) was in 3 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. There were 2 hedge funds in our database with ORGS positions at the end of the fourth quarter. Our calculations also showed that ORGS isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Israel Englander of Millennium Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. 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 homepage. Keeping this in mind let’s take a peek at the recent hedge fund action regarding Orgenesis Inc. (NASDAQ:ORGS).
Do Hedge Funds Think ORGS Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from one quarter earlier. On the other hand, there were a total of 2 hedge funds with a bullish position in ORGS a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Renaissance Technologies, holds the biggest position in Orgenesis Inc. (NASDAQ:ORGS). Renaissance Technologies has a $1.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is Ken Griffin of Citadel Investment Group, with a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Orgenesis Inc. (NASDAQ:ORGS), around 0.0019% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, designating 0.0001 percent of its 13F equity portfolio to ORGS.
Consequently, key money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, created the biggest position in Orgenesis Inc. (NASDAQ:ORGS). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.1 million position during the quarter.
Let’s now review hedge fund activity in other stocks similar to Orgenesis Inc. (NASDAQ:ORGS). These stocks are United Security Bancshares (NASDAQ:UBFO), Radcom Ltd. (NASDAQ:RDCM), ACRES Commercial Realty Corp. (NYSE:ACR), Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN), Northern Technologies International Corp (NASDAQ:NTIC), Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS), and FIRST FINANCIAL NORTHWEST, INC. (NASDAQ:FFNW). All of these stocks’ market caps match ORGS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| UBFO | 2 | 1717 | -1 |
| RDCM | 3 | 10000 | 0 |
| ACR | 5 | 16149 | -4 |
| GRIN | 2 | 8427 | 1 |
| NTIC | 3 | 8102 | -2 |
| PBTS | 2 | 109 | 1 |
| FFNW | 4 | 10608 | 0 |
| Average | 3 | 7873 | -0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 3 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $2 million in ORGS’s case. ACRES Commercial Realty Corp. (NYSE:ACR) is the most popular stock in this table. On the other hand United Security Bancshares (NASDAQ:UBFO) is the least popular one with only 2 bullish hedge fund positions. Orgenesis Inc. (NASDAQ:ORGS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ORGS is 37.7. 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 negative signal and 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 17.2% in 2021 through June 11th and surpassed the market again by 3.3 percentage points. Unfortunately ORGS wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); ORGS investors were disappointed as the stock returned -4.5% since the end of March (through 6/11) 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 most of these stocks already outperformed the market in 2021.
Disclosure: None. This article was originally published at Insider Monkey.