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The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on June 30th. We at Insider Monkey have made an extensive database of more than 873 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Regeneron Pharmaceuticals Inc (NASDAQ:REGN) based on those filings.
Regeneron Pharmaceuticals Inc (NASDAQ:REGN) investors should be aware of an increase in activity from the world's largest hedge funds in recent months. Regeneron Pharmaceuticals Inc (NASDAQ:REGN) was in 48 hedge funds' portfolios at the end of June. The all time high for this statistic is 49. Our calculations also showed that REGN isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
At the moment there are numerous metrics stock market investors put to use to appraise their holdings. Two of the most under-the-radar metrics are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the S&P 500 by a solid margin (see the details here). Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website .
Charles Clough of Clough Capital Partners
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to take a look at the fresh hedge fund action regarding Regeneron Pharmaceuticals Inc (NASDAQ:REGN).
Do Hedge Funds Think REGN Is A Good Stock To Buy Now?
Heading into the third quarter of 2021, a total of 48 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 23% from the first quarter of 2020. Below, you can check out the change in hedge fund sentiment towards REGN over the last 24 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, ARK Investment Management was the largest shareholder of Regeneron Pharmaceuticals Inc (NASDAQ:REGN), with a stake worth $398.3 million reported as of the end of June. Trailing ARK Investment Management was Citadel Investment Group, which amassed a stake valued at $157.5 million. Healthcor Management LP, AQR Capital Management, and Point72 Asset Management 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 Tri Locum Partners allocated the biggest weight to Regeneron Pharmaceuticals Inc (NASDAQ:REGN), around 21.05% of its 13F portfolio. Bronte Capital is also relatively very bullish on the stock, earmarking 4.68 percent of its 13F equity portfolio to REGN.
Now, key money managers were leading the bulls' herd. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, established the most outsized position in Regeneron Pharmaceuticals Inc (NASDAQ:REGN). Healthcor Management LP had $106.3 million invested in the company at the end of the quarter. Steve Cohen's Point72 Asset Management also made a $105.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Dmitry Balyasny's Balyasny Asset Management, Charles Clough's Clough Capital Partners, and Louis Bacon's Moore Global Investments.
Let's also examine hedge fund activity in other stocks similar to Regeneron Pharmaceuticals Inc (NASDAQ:REGN). We will take a look at Dominion Energy Inc. (NYSE:D), Ford Motor Company (NYSE:F), ICICI Bank Limited (NYSE:IBN), Waste Management, Inc. (NYSE:WM), Eaton Corporation plc (NYSE:ETN), Workday Inc (NASDAQ:WDAY), and Itau Unibanco Holding SA (NYSE:ITUB). This group of stocks' market caps are closest to REGN's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position D,34,1262051,-5 F,55,2106196,6 IBN,28,2473600,-3 WM,39,3600334,7 ETN,40,1062179,-9 WDAY,72,5187481,3 ITUB,16,431689,4 Average,40.6,2303361,0.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 40.6 hedge funds with bullish positions and the average amount invested in these stocks was $2303 million. That figure was $1595 million in REGN's case. Workday Inc (NASDAQ:WDAY) is the most popular stock in this table. On the other hand Itau Unibanco Holding SA (NYSE:ITUB) is the least popular one with only 16 bullish hedge fund positions. Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for REGN is 68. 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 22.9% in 2021 through October 1st and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on REGN, though not to the same extent, as the stock returned 2.2% since Q2 (through October 1st) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.