Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles 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 over the last 6 years and analyze what the smart money thinks of Coherent, Inc. (NASDAQ:COHR) based on that data and determine whether they were really smart about the stock.
Coherent, Inc. (NASDAQ:COHR) has experienced a decrease in support from the world’s most elite money managers in recent months. Coherent, Inc. (NASDAQ:COHR) was in 37 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 43. There were 43 hedge funds in our database with COHR holdings at the end of June. Our calculations also showed that COHR 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. Keeping this in mind we’re going to analyze the fresh hedge fund action encompassing Coherent, Inc. (NASDAQ:COHR).
Matthew Halbower of Pentwater Capital
Do Hedge Funds Think COHR Is A Good Stock To Buy Now?
At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the previous quarter. On the other hand, there were a total of 29 hedge funds with a bullish position in COHR a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Pentwater Capital Management, managed by Matthew Halbower, holds the number one position in Coherent, Inc. (NASDAQ:COHR). Pentwater Capital Management has a $384.1 million position in the stock, comprising 3.9% of its 13F portfolio. On Pentwater Capital Management’s heels is Magnetar Capital, led by Alec Litowitz and Ross Laser, holding a $167.9 million position; 1.7% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions consist of Robert Emil Zoellner’s Alpine Associates, John Orrico’s Water Island Capital and Simon Davies’s Sand Grove Capital Partners. In terms of the portfolio weights assigned to each position Havens Advisors allocated the biggest weight to Coherent, Inc. (NASDAQ:COHR), around 9.91% of its 13F portfolio. Sand Grove Capital Partners is also relatively very bullish on the stock, earmarking 9.1 percent of its 13F equity portfolio to COHR.
Due to the fact that Coherent, Inc. (NASDAQ:COHR) has experienced falling interest from hedge fund managers, it’s easy to see that there exists a select few money managers that decided to sell off their entire stakes in the third quarter. It’s worth mentioning that Matthew Moskey and Friedrich Schulte-Hillen’s Athos Capital said goodbye to the biggest position of all the hedgies tracked by Insider Monkey, comprising an estimated $10.2 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dropped about $10.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 6 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks similar to Coherent, Inc. (NASDAQ:COHR). These stocks are Paycor HCM Inc. (NASDAQ:PYCR), Cricut, Inc. (NASDAQ:CRCT), RBC Bearings Incorporated (NASDAQ:ROLL), CoreSite Realty Corp (NYSE:COR), Ultragenyx Pharmaceutical Inc (NASDAQ:RARE), Amkor Technology, Inc. (NASDAQ:AMKR), and STAAR Surgical Company (NASDAQ:STAA). This group of stocks’ market caps match COHR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PYCR | 9 | 21437 | 9 |
| CRCT | 9 | 284261 | -4 |
| ROLL | 22 | 225522 | 13 |
| COR | 15 | 165115 | -1 |
| RARE | 24 | 638601 | -8 |
| AMKR | 25 | 208350 | 6 |
| STAA | 26 | 1399899 | 0 |
| Average | 18.6 | 420455 | 2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.6 hedge funds with bullish positions and the average amount invested in these stocks was $420 million. That figure was $1464 million in COHR’s case. STAAR Surgical Company (NASDAQ:STAA) is the most popular stock in this table. On the other hand Paycor HCM Inc. (NASDAQ:PYCR) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Coherent, Inc. (NASDAQ:COHR) is more popular among hedge funds. Our overall hedge fund sentiment score for COHR is 74.8. 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 managed to beat the market by another 3.6 percentage points. Hedge funds were somewhat right about betting on COHR as the stock returned 3.4% since the end of September (through January 31st) and outperformed the top 5 hedge fund stocks but not the market. This is a rare phenomenon as top hedge fund stocks usually beat the market over the long-term.
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Disclosure: None. This article was originally published at Insider Monkey.
