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Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the third quarter. You can find articles 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 over the last 5 years and analyze what the smart money thinks of iRadimed Corporation (NASDAQ:IRMD) based on that data.
Is iRadimed Corporation (NASDAQ:IRMD) a good stock to buy today? The best stock pickers were getting less bullish. The number of bullish hedge fund bets decreased by 3 in recent months. iRadimed Corporation (NASDAQ:IRMD) was in 6 hedge funds' portfolios at the end of September. The all time high for this statistics is 14. 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 for a quick look at the top 5 stocks). There were 9 hedge funds in our database with IRMD positions at the end of the second quarter.
Video: 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 monthly stock picks returned 113% since March 2017 and outperformed the S&P 500 ETFs by more than 66 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Ryan Tolkin, CIO of Schonfeld Strategic Advisors
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. 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 website. Keeping this in mind let's take a look at the fresh hedge fund action encompassing iRadimed Corporation (NASDAQ:IRMD).
How are hedge funds trading iRadimed Corporation (NASDAQ:IRMD)?
At third quarter's end, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -33% from the previous quarter. On the other hand, there were a total of 9 hedge funds with a bullish position in IRMD a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves..
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, olds the biggest position in iRadimed Corporation (NASDAQ:IRMD). Renaissance Technologies has a $15.5 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies's heels is Nine Ten Partners, managed by Brian Bares, Russell Mollen, and James Bradshaw, which holds a $11.7 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions consist of Guy Levy's Soleus Capital, David Harding's Winton Capital Management and Cliff Asness's AQR Capital Management. In terms of the portfolio weights assigned to each position Nine Ten Partners allocated the biggest weight to iRadimed Corporation (NASDAQ:IRMD), around 2.44% of its 13F portfolio. Soleus Capital is also relatively very bullish on the stock, dishing out 2.25 percent of its 13F equity portfolio to IRMD.
Due to the fact that iRadimed Corporation (NASDAQ:IRMD) has experienced a decline in interest from hedge fund managers, logic holds that there lies a certain "tier" of hedge funds that elected to cut their full holdings last quarter. Interestingly, Greg Martinez's Parkman Healthcare Partners dropped the largest stake of the "upper crust" of funds watched by Insider Monkey, worth about $2.2 million in stock. Ryan Tolkin (CIO)'s fund, Schonfeld Strategic Advisors, also dumped its stock, about $0.3 million worth. These transactions are important to note, as total hedge fund interest fell by 3 funds last quarter.
Let's go over hedge fund activity in other stocks similar to iRadimed Corporation (NASDAQ:IRMD). These stocks are Capital Southwest Corporation (NASDAQ:CSWC), Taseko Mines Limited (NYSE:TGB), United Insurance Holdings Corp. (NASDAQ:UIHC), West Bancorporation, Inc. (NASDAQ:WTBA), G. Willi-Food International Limited (NASDAQ:WILC), Genius Brands International, Inc. (NASDAQ:GNUS), and Cabaletta Bio, Inc. (NASDAQ:CABA). This group of stocks' market caps are similar to IRMD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CSWC,7,8484,-1 TGB,5,7070,2 UIHC,9,7237,0 WTBA,3,6805,0 WILC,3,29801,0 GNUS,2,2021,-2 CABA,8,93137,-1 Average,5.3,22079,-0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.3 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $34 million in IRMD's case. United Insurance Holdings Corp. (NASDAQ:UIHC) is the most popular stock in this table. On the other hand Genius Brands International, Inc. (NASDAQ:GNUS) is the least popular one with only 2 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. Our overall hedge fund sentiment score for IRMD is 43.4. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. Hedge funds were also right about betting on IRMD as the stock returned 11.9% since the end of Q3 (through 11/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.