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In this article we will check out the progression of hedge fund sentiment towards ImmunoGen, Inc. (NASDAQ:IMGN) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Hedge fund interest in ImmunoGen, Inc. (NASDAQ:IMGN) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that IMGN isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as GH Research PLC (NASDAQ:GHRS), Boston Omaha Corporation (NASDAQ:BOMN), and Fortuna Silver Mines Inc. (NYSE:FSM) to gather more data points.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. With all of this in mind we're going to take a glance at the fresh hedge fund action encompassing ImmunoGen, Inc. (NASDAQ:IMGN).
Peter Kolchinsky of RA Capital Management
Do Hedge Funds Think IMGN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter of 2021. By comparison, 18 hedge funds held shares or bullish call options in IMGN a year ago. So, let's see 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, RA Capital Management, managed by Peter Kolchinsky, holds the most valuable position in ImmunoGen, Inc. (NASDAQ:IMGN). RA Capital Management has a $104.4 million position in the stock, comprising 1.4% of its 13F portfolio. The second most bullish fund manager is OrbiMed Advisors, with a $84.5 million position; 0.9% of its 13F portfolio is allocated to the company. Remaining members of the smart money that hold long positions consist of Jeremy Green's Redmile Group, Phill Gross and Robert Atchinson's Adage Capital Management and Israel Englander's Millennium Management. In terms of the portfolio weights assigned to each position SilverArc Capital allocated the biggest weight to ImmunoGen, Inc. (NASDAQ:IMGN), around 2.08% of its 13F portfolio. RA Capital Management is also relatively very bullish on the stock, setting aside 1.45 percent of its 13F equity portfolio to IMGN.
Because ImmunoGen, Inc. (NASDAQ:IMGN) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of funds who were dropping their entire stakes last quarter. Intriguingly, Farallon Capital dumped the biggest stake of all the hedgies followed by Insider Monkey, totaling about $4.9 million in stock. Ken Griffin's fund, Citadel Investment Group, also said goodbye to its stock, about $4.1 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's go over hedge fund activity in other stocks similar to ImmunoGen, Inc. (NASDAQ:IMGN). We will take a look at GH Research PLC (NASDAQ:GHRS), Boston Omaha Corporation (NASDAQ:BOMN), Fortuna Silver Mines Inc. (NYSE:FSM), Tivity Health, Inc. (NASDAQ:TVTY), Standard Lithium Ltd. (NYSE:SLI), National Energy Services Reunited Corp. (NASDAQ:NESR), and Accel Entertainment, Inc. (NYSE:ACEL). All of these stocks' market caps are closest to IMGN's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GHRS,16,407704,0 BOMN,2,275242,-1 FSM,10,17241,-4 TVTY,17,369312,-5 SLI,5,10975,5 NESR,10,50458,-1 ACEL,12,188066,2 Average,10.3,188428,-0.6 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.3 hedge funds with bullish positions and the average amount invested in these stocks was $188 million. That figure was $363 million in IMGN's case. Tivity Health, Inc. (NASDAQ:TVTY) is the most popular stock in this table. On the other hand Boston Omaha Corporation (NASDAQ:BOMN) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks ImmunoGen, Inc. (NASDAQ:IMGN) is more popular among hedge funds. Our overall hedge fund sentiment score for IMGN is 85. 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 returned 31.1% in 2021 through December 9th but still managed to beat the market by 5.1 percentage points. Hedge funds were also right about betting on IMGN as the stock returned 21.2% since the end of September (through 12/9) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.