Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of AgroFresh Solutions Inc (NASDAQ:AGFS) based on that data.
AgroFresh Solutions Inc (NASDAQ:AGFS) was in 23 hedge funds’ portfolios at the end of September. AGFS has seen an increase in hedge fund interest lately. There were 22 hedge funds in our database with AGFS positions at the end of the previous quarter. At the end of this article we will also compare AGFS to other stocks including Castlight Health Inc (NYSE:CSLT), Idera Pharmaceuticals Inc (NASDAQ:IDRA), and Culp, Inc. (NYSE:CFI) to get a better sense of its popularity.
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In today’s marketplace there are many formulas market participants have at their disposal to size up publicly traded companies. A couple of the best formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outclass their index-focused peers by a significant margin (see the details here).
Keeping this in mind, we’re going to take a look at the key action encompassing AgroFresh Solutions Inc (NASDAQ:AGFS).
What have hedge funds been doing with AgroFresh Solutions Inc (NASDAQ:AGFS)?
At the Q3’s end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Pentwater Capital Management, managed by Matthew Halbower, holds the biggest position in AgroFresh Solutions Inc (NASDAQ:AGFS). Pentwater Capital Management has an $11.9 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is Highbridge Capital Management, managed by Glenn Russell Dubin, which holds an $10.8 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other peers with similar optimism contain David M. Markowitz’s Oskie Capital Management, Michael Barnes and Arif Inayatullah’s Tricadia Capital Management and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
Consequently, key hedge funds have been driving this bullishness. Pentwater Capital Management, managed by Matthew Halbower, established the biggest position in AgroFresh Solutions Inc (NASDAQ:AGFS). Pentwater Capital Management had $11.9 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made an $10.8 million investment in the stock during the quarter. The other funds with new positions in the stock are David M. Markowitz’s Oskie Capital Management, Michael Barnes and Arif Inayatullah’s Tricadia Capital Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
Let’s now take a look at hedge fund activity in other stocks similar to AgroFresh Solutions Inc (NASDAQ:AGFS). These stocks are Castlight Health Inc (NYSE:CSLT), Idera Pharmaceuticals Inc (NASDAQ:IDRA), Culp, Inc. (NYSE:CFI), and Vicor Corp (NASDAQ:VICR). This group of stocks’ market valuations match AGFS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CSLT | 14 | 28781 | -2 |
| IDRA | 14 | 53318 | 0 |
| CFI | 15 | 45947 | 1 |
| VICR | 11 | 15429 | -1 |
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $36 million, which is below the $69 million figure in AGFS’s case. Culp, Inc. (NYSE:CFI) is the most popular stock in this table with 15 funds reporting long positions, while Vicor Corp (NASDAQ:VICR) is the least popular one. Compared to these stocks AgroFresh Solutions Inc (NASDAQ:AGFS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially acquire a long position.