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 ImmunoGen, Inc. (NASDAQ:IMGN) based on that data.
ImmunoGen, Inc. (NASDAQ:IMGN) investors should be aware of an increase in support from the world's most elite money managers of late. Our calculations also showed that IMGN isn't among the 30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We're going to take a look at the latest hedge fund action regarding ImmunoGen, Inc. (NASDAQ:IMGN).
How are hedge funds trading ImmunoGen, Inc. (NASDAQ:IMGN)?
Heading into the fourth quarter of 2018, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of 38% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards IMGN over the last 13 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in ImmunoGen, Inc. (NASDAQ:IMGN) was held by Redmile Group, which reported holding $116.6 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $59.8 million position. Other investors bullish on the company included Point72 Asset Management, Citadel Investment Group, and OrbiMed Advisors.
As aggregate interest increased, specific money managers were leading the bulls' herd. Point72 Asset Management, managed by Steve Cohen, established the biggest call position in ImmunoGen, Inc. (NASDAQ:IMGN). Point72 Asset Management had $7.1 million invested in the company at the end of the quarter. Anand Parekh's Alyeska Investment Group also initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are Louis Navellier's Navellier & Associates, Efrem Kamen's Pura Vida Investments, and Jerome Pfund and Michael Sjostrom's Sectoral Asset Management.
Let's also examine hedge fund activity in other stocks similar to ImmunoGen, Inc. (NASDAQ:IMGN). These stocks are Sibanye Gold Ltd (NYSE:SBGL), Unit Corporation (NYSE:UNT), Asbury Automotive Group, Inc. (NYSE:ABG), and Cheetah Mobile Inc (NYSE:CMCM). This group of stocks' market valuations resemble IMGN's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SBGL,12,8798,2 UNT,10,22052,-1 ABG,17,212556,2 CMCM,7,4083,1 Average,11.5,61872,1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $288 million in IMGN's case. Asbury Automotive Group, Inc. (NYSE:ABG) is the most popular stock in this table. On the other hand Cheetah Mobile Inc (NYSE:CMCM) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks ImmunoGen, Inc. (NASDAQ:IMGN) 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 include it in your portfolio.
Disclosure: None. This article was originally published at Insider Monkey.