The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing more than 730 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of June 28th, 2019. In this article we are going to take a look at smart money sentiment towards AngioDynamics, Inc. (NASDAQ:ANGO).
AngioDynamics, Inc. (NASDAQ:ANGO) shareholders have witnessed a decrease in support from the world's most elite money managers in recent months. Our calculations also showed that ANGO isn't among the 30 most popular stocks among hedge funds (see the video below). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let's take a gander at the latest hedge fund action regarding AngioDynamics, Inc. (NASDAQ:ANGO).
What does smart money think about AngioDynamics, Inc. (NASDAQ:ANGO)?
Heading into the third quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ANGO over the last 16 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
The largest stake in AngioDynamics, Inc. (NASDAQ:ANGO) was held by Royce & Associates, which reported holding $12.8 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $7.5 million position. Other investors bullish on the company included Millennium Management, D E Shaw, and GLG Partners.
Judging by the fact that AngioDynamics, Inc. (NASDAQ:ANGO) has experienced a decline in interest from the entirety of the hedge funds we track, we can see that there exists a select few hedge funds who were dropping their entire stakes in the second quarter. It's worth mentioning that Jeffrey Talpins's Element Capital Management sold off the largest stake of all the hedgies followed by Insider Monkey, comprising about $0.3 million in stock, and Ronald Hua's Qtron Investments was right behind this move, as the fund cut about $0.3 million worth. These transactions are interesting, as total hedge fund interest dropped by 1 funds in the second quarter.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as AngioDynamics, Inc. (NASDAQ:ANGO) but similarly valued. These stocks are Organogenesis Holdings Inc. (NASDAQ:ORGO), Kimbell Royalty Partners (NYSE:KRP), Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM), and Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB). This group of stocks' market caps match ANGO's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ORGO,2,328,-2 KRP,5,17409,0 RYTM,10,148953,-1 YMAB,7,40648,3 Average,6,51835,0 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $52 million. That figure was $37 million in ANGO's case. Rhythm Pharmaceuticals, Inc. (NASDAQ:RYTM) is the most popular stock in this table. On the other hand Organogenesis Holdings Inc. (NASDAQ:ORGO) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks AngioDynamics, Inc. (NASDAQ:ANGO) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately ANGO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ANGO were disappointed as the stock returned -6.4% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market in Q3.
Disclosure: None. This article was originally published at Insider Monkey.