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 Iron Mountain Incorporated (NYSE:IRM) makes for a good investment right now.
Is Iron Mountain Incorporated (NYSE:IRM) a buy here? Hedge funds were getting less optimistic. The number of long hedge fund bets were trimmed by 4 in recent months. Iron Mountain Incorporated (NYSE:IRM) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 25. Our calculations also showed that IRM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
David E. Shaw of D.E. Shaw
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 look at the new hedge fund action regarding Iron Mountain Incorporated (NYSE:IRM).
Do Hedge Funds Think IRM Is A Good Stock To Buy Now?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -16% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in IRM over the last 25 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
Among these funds, PEAK6 Capital Management held the most valuable stake in Iron Mountain Incorporated (NYSE:IRM), which was worth $23.3 million at the end of the third quarter. On the second spot was Adage Capital Management which amassed $13.1 million worth of shares. Zimmer Partners, Citadel Investment Group, 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 Zimmer Partners allocated the biggest weight to Iron Mountain Incorporated (NYSE:IRM), around 0.2% of its 13F portfolio. Neo Ivy Capital is also relatively very bullish on the stock, earmarking 0.12 percent of its 13F equity portfolio to IRM.
Since Iron Mountain Incorporated (NYSE:IRM) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few fund managers who sold off their positions entirely heading into Q4. Intriguingly, Leon Shaulov’s Maplelane Capital sold off the largest stake of the 750 funds followed by Insider Monkey, totaling an estimated $9 million in call options, and D. E. Shaw’s D E Shaw was right behind this move, as the fund dropped about $3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Iron Mountain Incorporated (NYSE:IRM) but similarly valued. These stocks are Enel Americas S.A. (NYSE:ENIA), Tenaris S.A. (NYSE:TS), Opendoor Technologies Inc. (NASDAQ:OPEN), Fortune Brands Home & Security Inc (NYSE:FBHS), American Homes 4 Rent (NYSE:AMH), Hasbro, Inc. (NASDAQ:HAS), and Tencent Music Entertainment Group (NYSE:TME). This group of stocks’ market caps are similar to IRM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ENIA | 9 | 29042 | 2 |
| TS | 14 | 190418 | 0 |
| OPEN | 35 | 1742867 | 0 |
| FBHS | 23 | 344859 | -5 |
| AMH | 33 | 786048 | 2 |
| HAS | 25 | 185494 | -2 |
| TME | 24 | 256088 | -11 |
| Average | 23.3 | 504974 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.3 hedge funds with bullish positions and the average amount invested in these stocks was $505 million. That figure was $64 million in IRM’s case. Opendoor Technologies Inc. (NASDAQ:OPEN) is the most popular stock in this table. On the other hand Enel Americas S.A. (NYSE:ENIA) is the least popular one with only 9 bullish hedge fund positions. Iron Mountain Incorporated (NYSE:IRM) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for IRM is 49.3. 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. 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 still beat the market by 3.6 percentage points. A small number of hedge funds were also right about betting on IRM as the stock returned 22% since the end of the third quarter (through 12/31) and outperformed the market by an even larger margin.
Follow Iron Mountain Inc (NYSE:IRM)
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Disclosure: None. This article was originally published at Insider Monkey.
