Technology stocks had a lousy start to 2022. QQQ lost 9% of its value in January. Pandemic winners are getting crushed while energy stocks are surging. Roblox lost 36%, Moderna lost 33%, and Carvana and Shopify lost 30% of their values in January. We aren’t certain about the bubbly technology stocks that trade for ridiculously high multiples of their revenues, but we believe top hedge fund stocks will deliver positive returns for the rest of the year. In this article, we will take a closer look at hedge fund sentiment towards Ingersoll Rand Inc. (NYSE:IR) at the end of the third quarter and determine whether the smart money was really smart about this stock.
Is Ingersoll Rand Inc. (NYSE:IR) a good investment right now? The best stock pickers were getting more optimistic. The number of long hedge fund bets inched up by 2 recently. Ingersoll Rand Inc. (NYSE:IR) was in 33 hedge funds’ portfolios at the end of September. The all time high for this statistic is 47. Our calculations also showed that IR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Andreas Halvorsen of Viking Global
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. With all of this in mind we’re going to take a glance at the fresh hedge fund action surrounding Ingersoll Rand Inc. (NYSE:IR).
Do Hedge Funds Think IR Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of 6% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards IR over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Viking Global was the largest shareholder of Ingersoll Rand Inc. (NYSE:IR), with a stake worth $183.5 million reported as of the end of September. Trailing Viking Global was Adage Capital Management, which amassed a stake valued at $129.1 million. Holocene Advisors, Point State Capital, and Greenhouse Funds 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 Greenhouse Funds allocated the biggest weight to Ingersoll Rand Inc. (NYSE:IR), around 3.92% of its 13F portfolio. Goodnow Investment Group is also relatively very bullish on the stock, designating 2.59 percent of its 13F equity portfolio to IR.
Now, key money managers were leading the bulls’ herd. Point State Capital, managed by Zach Schreiber, established the largest position in Ingersoll Rand Inc. (NYSE:IR). Point State Capital had $84.4 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also initiated a $13.3 million position during the quarter. The following funds were also among the new IR investors: Louis Bacon’s Moore Global Investments, Anand Parekh’s Alyeska Investment Group, and Jinghua Yan’s TwinBeech Capital.
Let’s now take a look at hedge fund activity in other stocks similar to Ingersoll Rand Inc. (NYSE:IR). We will take a look at Steris Plc (NYSE:STE), The Cooper Companies, Inc. (NYSE:COO), Regions Financial Corporation (NYSE:RF), The Clorox Company (NYSE:CLX), Cenovus Energy Inc (NYSE:CVE), Church & Dwight Co., Inc. (NYSE:CHD), and Expeditors International of Washington (NASDAQ:EXPD). This group of stocks’ market values are similar to IR’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| STE | 34 | 1733011 | -1 |
| COO | 37 | 1403322 | 4 |
| RF | 28 | 204669 | -5 |
| CLX | 34 | 971875 | -3 |
| CVE | 30 | 717847 | -2 |
| CHD | 20 | 1362889 | -15 |
| EXPD | 26 | 452843 | -3 |
| Average | 29.9 | 978065 | -3.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29.9 hedge funds with bullish positions and the average amount invested in these stocks was $978 million. That figure was $733 million in IR’s case. The Cooper Companies, Inc. (NYSE:COO) is the most popular stock in this table. On the other hand Church & Dwight Co., Inc. (NYSE:CHD) is the least popular one with only 20 bullish hedge fund positions. Ingersoll Rand Inc. (NYSE:IR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for IR is 66.3. 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. Hedge funds were also right about betting on IR as the stock returned 11.5% since the end of Q3 (through 1/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Ingersoll Rand Inc. (NYSE:IR)
Follow Ingersoll Rand Inc. (NYSE:IR)
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Disclosure: None. This article was originally published at Insider Monkey.
