Hedge funds pile up in ASGN Incorporated (ASGN)
The more than 800 famous hedge funds and fund managers tracked by Insider Monkey have already compiled and submitted their 13F files for the first quarter, which disclose their positions in equities as of March 31. We went through these documents, corrected typos and other larger errors, and identified changes in hedge fund portfolios. Our in-depth review of these public filings is finally complete, so this article is intended to reveal the smart money sentiment toward ASGN Incorporated (NYSE: ASGN).
ASGN Incorporated (NYSE: ASGN) recently saw an increase in hedge fund sentiment. ASGN Incorporated (NYSE: ASGN) was listed in 20 hedge fund portfolios at the end of March. The historical high for this statistic is 23. Our calculations also showed that ASGN is not among the 30 most popular stocks among hedge funds (click for Q1 rank).
So why do we pay attention to hedge fund sentiment before making investment decisions? Our research has shown that small cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 115 percentage points since March 2017 (see details here). We have been able to outperform passive index funds by tracking corporate and hedge fund insider movements, and we believe small investors can benefit greatly from reading hedge fund investor letters and 13F records. .
Peter Algert of Algert Global
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Do hedge funds think ASGN is a good stock to buy now?
At the end of the first quarter, 20 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 43% from the previous quarter. By comparison, 19 hedge funds held bullish stocks or call options in ASGN a year ago. So let’s take a look at which hedge funds were among the top stock holders and which hedge funds were making big moves.
The largest stake in ASGN Incorporated (NYSE: ASGN) was held by Citadel Investment Group, which said it held $ 22.9 million in shares at the end of December. It was followed by AQR Capital Management with a position of $ 16.5 million. Other bullish investors for the company included Verdad Advisers, Driehaus Capital and ExodusPoint Capital. In terms of the portfolio weights assigned to each position, Verdad Advisers assigned the largest weight to ASGN Incorporated (NYSE: ASGN), around 3.5% of its 13F portfolio. Sio Capital is also relatively very bullish on the stock, allocating 0.67% of its 13F equity portfolio to ASGN.
As one might reasonably expect, specific fund managers led the herd of bulls. Algert Global, led by Peter Algert, created the largest position in ASGN Incorporated (NYSE: ASGN). Algert Global had invested $ 1.3 million in the business at the end of the quarter. Israel Englander’s Millennium Management also initiated a $ 1.2 million position during the quarter. Other funds with brand new ASGN positions are Caxton Associates LP by Bruce Kovner, Balyasny Asset Management by Dmitry Balyasny and Paloma Partners by Donald Sussman.
Let’s review hedge fund activity in other stocks similar to ASGN Incorporated (NYSE: ASGN). These stocks are Flowserve Corporation (NYSE: FLS), Cyberark Software Ltd (NASDAQ: CYBR), Valmont Industries, Inc. (NYSE: VMI), Exponent, Inc. (NASDAQ: EXPO), IDACORP Inc (NYSE: IDA), Amyris Inc (NASDAQ: AMRS) and RLI Corp. (NYSE: RLI). The market values of this group of shares are similar to the market value of ASGN.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF FLS, 29.174239.8 CYBR, 32.502899.5 VMI, 23.401266, -3 EXPO, 17.63144.2 IDA, 17.174429.3 AMRS, 14.641287, -1 RLI, 14.189969, -1 Medium, 20.9.306748,1.9 [/table]
Check the table here if you have formatting issues.
As you can see, these stocks had an average of 20.9 hedge funds with bullish positions and the average amount invested in these stocks was $ 307 million. That figure was $ 79 million in the case of ASGN. Cyberark Software Ltd (NASDAQ: CYBR) is the most popular stock in this table. On the other hand, Amyris Inc (NASDAQ: AMRS) is the least popular with only 14 bullish hedge fund positions. ASGN Incorporated (NYSE: ASGN) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall ASGN hedge fund sentiment score is 52.8. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we prefer to spend our time researching the stocks that hedge funds are accumulating on. Our calculations showed that the 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 23.8% in 2021 through July 16 and again topped the market by 7.7 percentage points. Unfortunately, ASGN was not as popular as these 5 stocks (hedge fund sentiment was rather bearish); ASGN investors were disappointed as the stock returned -0.4% since the end of March (until 7/16) and underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market in 2021.
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Disclosure: none. This article originally appeared on Insider Monkey.