At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not SI-BONE, Inc. (NASDAQ:SIBN) makes for a good investment right now.
SI-BONE, Inc. (NASDAQ:SIBN) shareholders have witnessed a decrease in hedge fund interest lately. SI-BONE, Inc. (NASDAQ:SIBN) was in 25 hedge funds’ portfolios at the end of September. The all time high for this statistic is 30. Our calculations also showed that SIBN 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. Now let’s review the key hedge fund action surrounding SI-BONE, Inc. (NASDAQ:SIBN).
Ryan Tolkin, CIO of Schonfeld Strategic Advisors
Do Hedge Funds Think SIBN Is A Good Stock To Buy Now?
At the end of September, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -11% from one quarter earlier. On the other hand, there were a total of 19 hedge funds with a bullish position in SIBN a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, OrbiMed Advisors held the most valuable stake in SI-BONE, Inc. (NASDAQ:SIBN), which was worth $48.2 million at the end of the third quarter. On the second spot was Millennium Management which amassed $38.1 million worth of shares. Holocene Advisors, Armistice Capital, and Driehaus 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 SI-BONE, Inc. (NASDAQ:SIBN), around 2.71% of its 13F portfolio. Endurant Capital Management is also relatively very bullish on the stock, setting aside 2.3 percent of its 13F equity portfolio to SIBN.
Judging by the fact that SI-BONE, Inc. (NASDAQ:SIBN) has faced bearish sentiment from the smart money, logic holds that there is a sect of funds that slashed their entire stakes last quarter. Intriguingly, Mark Coe’s Intrinsic Edge Capital said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising about $7.3 million in stock. Josh Goldberg’s fund, G2 Investment Partners Management, also sold off its stock, about $5.8 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 3 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks similar to SI-BONE, Inc. (NASDAQ:SIBN). These stocks are Pzena Investment Management Inc (NYSE:PZN), SP Plus Corp (NASDAQ:SP), Uranium Energy Corp. (NYSE:UEC), Immunovant, Inc. (NASDAQ:IMVT), Ares Commercial Real Estate Corp (NYSE:ACRE), Myers Industries, Inc. (NYSE:MYE), and Hess Midstream LP (NYSE:HESM). This group of stocks’ market valuations are similar to SIBN’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PZN | 7 | 12470 | 1 |
| SP | 11 | 27138 | -4 |
| UEC | 12 | 10577 | -2 |
| IMVT | 16 | 42543 | -5 |
| ACRE | 7 | 26025 | -3 |
| MYE | 9 | 104579 | 0 |
| HESM | 8 | 20856 | 1 |
| Average | 10 | 34884 | -1.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $194 million in SIBN’s case. Immunovant, Inc. (NASDAQ:IMVT) is the most popular stock in this table. On the other hand Pzena Investment Management Inc (NYSE:PZN) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks SI-BONE, Inc. (NASDAQ:SIBN) is more popular among hedge funds. Our overall hedge fund sentiment score for SIBN is 77. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately SIBN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on SIBN were disappointed as the stock returned -4.8% since the end of the third quarter (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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
