Should I Buy AngioDynamics, Inc. (ANGO)?

With the second-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the third quarter of 2021. One of these stocks was AngioDynamics, Inc. (NASDAQ:ANGO).

AngioDynamics, Inc. (NASDAQ:ANGO) investors should pay attention to an increase in activity from the world’s largest hedge funds recently. AngioDynamics, Inc. (NASDAQ:ANGO) was in 22 hedge funds’ portfolios at the end of June. The all time high for this statistic is 23. There were 15 hedge funds in our database with ANGO holdings at the end of March. Our calculations also showed that ANGO isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.

Joel Greenblatt of Gotham Asset Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. 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 we’re going to check out the new hedge fund action encompassing AngioDynamics, Inc. (NASDAQ:ANGO).

Do Hedge Funds Think ANGO Is A Good Stock To Buy Now?

Heading into the third quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 47% from the first quarter of 2020. Below, you can check out the change in hedge fund sentiment towards ANGO over the last 24 quarters. So, let’s find out 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 AngioDynamics, Inc. (NASDAQ:ANGO), with a stake worth $43.6 million reported as of the end of June. Trailing Millennium Management was Adage Capital Management, which amassed a stake valued at $32.6 million. Point72 Asset Management, Renaissance Technologies, and Arrowstreet 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 Parian Global Management allocated the biggest weight to AngioDynamics, Inc. (NASDAQ:ANGO), around 3.16% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, setting aside 2.31 percent of its 13F equity portfolio to ANGO.

Now, some big names were breaking ground themselves. Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, assembled the most valuable position in AngioDynamics, Inc. (NASDAQ:ANGO). Polar Capital had $2.6 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Ray Dalio’s Bridgewater Associates, Jinghua Yan’s TwinBeech Capital, and Joel Greenblatt’s Gotham Asset Management.

Let’s go over hedge fund activity in other stocks similar to AngioDynamics, Inc. (NASDAQ:ANGO). These stocks are TPG RE Finance Trust, Inc. (NYSE:TRTX), SI-BONE, Inc. (NASDAQ:SIBN), So-Young International Inc. (NASDAQ:SY), Fortuna Silver Mines Inc. (NYSE:FSM), OneSpan Inc. (NASDAQ:OSPN), Endeavour Silver Corp. (NYSE:EXK), and Forestar Group Inc. (NYSE:FOR). This group of stocks’ market caps are closest to ANGO’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 12.7 hedge funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $155 million in ANGO’s case. SI-BONE, Inc. (NASDAQ:SIBN) is the most popular stock in this table. On the other hand So-Young International Inc. (NASDAQ:SY) is the least popular one with only 5 bullish hedge fund positions. AngioDynamics, Inc. (NASDAQ:ANGO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ANGO is 75.7. 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. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Hedge funds were also right about betting on ANGO as the stock returned 5.2% since the end of Q2 (through 10/22) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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Disclosure: None. This article was originally published at Insider Monkey.

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