A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on iRadimed Corporation (NASDAQ:IRMD).
iRadimed Corporation (NASDAQ:IRMD) investors should pay attention to an increase in enthusiasm from smart money recently. IRMD was in 9 hedge funds' portfolios at the end of September. There were 6 hedge funds in our database with IRMD positions at the end of the previous quarter. Our calculations also showed that IRMD isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
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' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the Russell 2000 ETFs by 40 percentage points since May 2014 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
[caption id="attachment_26073" align="alignnone" width="600"] Jim Simons of Renaissance Technologies[/caption]
We leave no stone unturned when looking for the next great investment idea. For example Discover is offering this insane cashback card, so we look into shorting the stock. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We even check out this option genius’ weekly trade ideas. This December we recommended Adams Energy based on an under-the-radar fund manager’s investor letter and the stock gained 20 percent. Let's check out the latest hedge fund action encompassing iRadimed Corporation (NASDAQ:IRMD).
Hedge fund activity in iRadimed Corporation (NASDAQ:IRMD)
At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in IRMD over the last 17 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies has the most valuable position in iRadimed Corporation (NASDAQ:IRMD), worth close to $8.8 million, amounting to less than 0.1%% of its total 13F portfolio. The second largest stake is held by Paul Marshall and Ian Wace of Marshall Wace, with a $2.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Cliff Asness's AQR Capital Management, Louis Navellier's Navellier & Associates and Brian Bares, Russell Mollen, and James Bradshaw's Nine Ten Partners. In terms of the portfolio weights assigned to each position Nine Ten Partners allocated the biggest weight to iRadimed Corporation (NASDAQ:IRMD), around 0.15% of its 13F portfolio. Algert Coldiron Investors is also relatively very bullish on the stock, earmarking 0.11 percent of its 13F equity portfolio to IRMD.
Consequently, some big names were breaking ground themselves. Nine Ten Partners, managed by Brian Bares, Russell Mollen, and James Bradshaw, initiated the largest position in iRadimed Corporation (NASDAQ:IRMD). Nine Ten Partners had $0.5 million invested in the company at the end of the quarter. Israel Englander's Millennium Management also initiated a $0.5 million position during the quarter. The following funds were also among the new IRMD investors: Michael Gelband's ExodusPoint Capital and Peter Algert and Kevin Coldiron's Algert Coldiron Investors.
Let's go over hedge fund activity in other stocks similar to iRadimed Corporation (NASDAQ:IRMD). These stocks are La Jolla Pharmaceutical Company (NASDAQ:LJPC), Farmland Partners Inc (NYSE:FPI), Investar Holding Corporation (NASDAQ:ISTR), and MannKind Corporation (NASDAQ:MNKD). This group of stocks' market values are closest to IRMD's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LJPC,13,79706,0 FPI,9,6350,1 ISTR,6,27207,1 MNKD,6,6736,0 Average,8.5,30000,0.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $15 million in IRMD's case. La Jolla Pharmaceutical Company (NASDAQ:LJPC) is the most popular stock in this table. On the other hand Investar Holding Corporation (NASDAQ:ISTR) is the least popular one with only 6 bullish hedge fund positions. iRadimed Corporation (NASDAQ:IRMD) is not the most popular stock in this group but hedge fund interest is still above average. 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 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately IRMD wasn't nearly as popular as these 20 stocks and hedge funds that were betting on IRMD were disappointed as the stock returned 4.6% during the fourth quarter (through the end of November) 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 so far this year.
Disclosure: None. This article was originally published at Insider Monkey.