The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) has experienced an increase in support from the world’s most elite money managers of late. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) was in 60 hedge funds’ portfolios at the end of September. The all time high for this statistic is 61. There were 56 hedge funds in our database with HZNP holdings at the end of June. Our calculations also showed that HZNP isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Richard Driehaus of Driehaus Capital
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. Now we’re going to go over the fresh hedge fund action encompassing Horizon Therapeutics Public Limited Company (NASDAQ:HZNP).
Do Hedge Funds Think HZNP Is A Good Stock To Buy Now?
At Q3’s end, a total of 60 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards HZNP over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Avoro Capital Advisors (venBio Select Advisor) held the most valuable stake in Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), which was worth $985.9 million at the end of the third quarter. On the second spot was Paulson & Co which amassed $675.8 million worth of shares. Renaissance Technologies, OrbiMed Advisors, and Perceptive Advisors 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 Paulson & Co allocated the biggest weight to Horizon Therapeutics Public Limited Company (NASDAQ:HZNP), around 19.25% of its 13F portfolio. Avoro Capital Advisors (venBio Select Advisor) is also relatively very bullish on the stock, designating 15.49 percent of its 13F equity portfolio to HZNP.
With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Alyeska Investment Group, managed by Anand Parekh, initiated the most valuable position in Horizon Therapeutics Public Limited Company (NASDAQ:HZNP). Alyeska Investment Group had $52 million invested in the company at the end of the quarter. Christopher James’s Partner Fund Management also initiated a $48.1 million position during the quarter. The other funds with brand new HZNP positions are Brandon Haley’s Holocene Advisors, Richard Driehaus’s Driehaus Capital, and Bhagwan Jay Rao’s Integral Health Asset Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) but similarly valued. These stocks are Expedia Group Inc (NASDAQ:EXPE), Sirius XM Holdings Inc (NASDAQ:SIRI), Kansas City Southern (NYSE:KSU), Upstart Holdings, Inc. (NASDAQ:UPST), Yum China Holdings, Inc. (NYSE:YUMC), Hartford Financial Services Group Inc (NYSE:HIG), and Hess Corporation (NYSE:HES). This group of stocks’ market caps match HZNP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EXPE | 78 | 6470916 | -9 |
| SIRI | 27 | 470025 | 1 |
| KSU | 59 | 4323096 | -2 |
| UPST | 23 | 5076367 | 2 |
| YUMC | 30 | 832648 | -2 |
| HIG | 34 | 941705 | -9 |
| HES | 27 | 726783 | -4 |
| Average | 39.7 | 2691649 | -3.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 39.7 hedge funds with bullish positions and the average amount invested in these stocks was $2692 million. That figure was $4574 million in HZNP’s case. Expedia Group Inc (NASDAQ:EXPE) is the most popular stock in this table. On the other hand Upstart Holdings, Inc. (NASDAQ:UPST) is the least popular one with only 23 bullish hedge fund positions. Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HZNP is 72.1. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 beat the market again by 3.6 percentage points. Unfortunately, HZNP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on HZNP were disappointed as the stock returned -14.8% since the end of September (through 1/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as all of these stocks already outperformed the market since 2019.
Follow Horizon Therapeutics Public Ltd Co (NASDAQ:HZNP)
Follow Horizon Therapeutics Public Ltd Co (NASDAQ:HZNP)
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Disclosure: None. This article was originally published at Insider Monkey.
