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 Origin Materials Inc. (NASDAQ:ORGN).
Is ORGN a good stock to buy? Origin Materials Inc. (NASDAQ:ORGN) was in 29 hedge funds’ portfolios at the end of September. The all time high for this statistic is 34. ORGN investors should be aware of a decrease in enthusiasm from smart money recently. There were 34 hedge funds in our database with ORGN holdings at the end of June. Our calculations also showed that ORGN 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 we’re going to go over the recent hedge fund action encompassing Origin Materials Inc. (NASDAQ:ORGN).
Matthew Drapkin of Becker Drapkin Management
Do Hedge Funds Think ORGN 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 long this stock, a change of -15% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards ORGN 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.
More specifically, Millennium Management was the largest shareholder of Origin Materials Inc. (NASDAQ:ORGN) , with a stake worth $27.5 million reported as of the end of September. Trailing Millennium Management was Sylebra Capital Management, which amassed a stake valued at $10.2 million. Alyeska Investment Group, Hudson Bay Capital Management, and Millennium 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 Boardman Bay Capital Management allocated the biggest weight to Origin Materials Inc. (NASDAQ:ORGN) , around 0.41% of its 13F portfolio. Ionic Capital Management is also relatively very bullish on the stock, setting aside 0.25 percent of its 13F equity portfolio to ORGN.
Due to the fact that Origin Materials Inc. (NASDAQ:ORGN) has faced falling interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers that slashed their positions entirely by the end of the third quarter. Intriguingly, Peter S. Park’s Park West Asset Management said goodbye to the largest position of all the hedgies followed by Insider Monkey, valued at an estimated $12.3 million in stock, and Doug Silverman and Alexander Klabin’s Senator Investment Group was right behind this move, as the fund said goodbye to about $7.7 million worth. These transactions are important to note, as total hedge fund interest was cut by 5 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Origin Materials Inc. (NASDAQ:ORGN) but similarly valued. These stocks are PLBY Group, Inc. (NASDAQ:PLBY), Trueblue Inc (NYSE:TBI), Suburban Propane Partners LP (NYSE:SPH), Cambium Networks Corporation (NASDAQ:CMBM), Bain Capital Specialty Finance, Inc. (NYSE:BCSF), SunOpta, Inc. (NASDAQ:STKL), and FLEX LNG Ltd. (NYSE:FLNG). This group of stocks’ market caps are similar to ORGN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PLBY | 15 | 62389 | -5 |
| TBI | 13 | 104805 | 0 |
| SPH | 3 | 6137 | 0 |
| CMBM | 14 | 70431 | -9 |
| BCSF | 7 | 13307 | -3 |
| STKL | 24 | 415916 | -2 |
| FLNG | 3 | 7792 | -3 |
| Average | 11.3 | 97254 | -3.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.3 hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $73 million in ORGN’s case. SunOpta, Inc. (NASDAQ:STKL) is the most popular stock in this table. On the other hand Suburban Propane Partners LP (NYSE:SPH) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Origin Materials Inc. (NASDAQ:ORGN) is more popular among hedge funds. Our overall hedge fund sentiment score for ORGN is 75.6. 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. 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 still beat the market by 5.6 percentage points. Unfortunately ORGN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ORGN were disappointed as the stock returned -0.3% since the end of the third quarter (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 most of these stocks already outperformed the market since 2019.
Follow Origin Materials Inc.
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Disclosure: None. This article was originally published at Insider Monkey.
