In Insider Monkey we exceeded 867 13F deposits hedge funds and high profile investors are required to file by the Securities and Exchange Commission. The 13F deposits show the positions of the fund’s portfolios and investors as of September 30th. In this article, we take a look at what these funds think of Chart Industries, Inc. (NYSE: GTLS) based on that data.
Is GTLS a good stock to buy? Chart Industries, Inc. (NYSE: GTLS) Investors should pay attention to the drop in interest rates on hedge funds in recent months. Chart Industries, Inc. (NYSE: GTLS) in 22 hedge fund portfolios at the end of September. The all-time high for this statistic is 27. Our calculations also showed that GTLS is not among the 30 most popular hedge fund stocks (click for Q2 rankings).
At Insider Monkey, we look for multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we review lists like the 10 best electric vehicle stocks to pick the next Tesla that will generate a 10x return. Although we recommend positions in only a small portion of the companies we analyze, we check as many stocks as possible. With that in mind, let’s analyze a new hedge fund action involving Chart Industries, Inc. (NYSE: GTLS).
Ken Fisher from Fisher Asset Management
Do hedge funds think GTL is a good stock to buy now?
At the end of the third quarter, a total of 22 hedge funds tracked by Insider Monkey were bullish on this stock, a -19% change from the previous quarter. By comparison, 20 hedge funds had bullish stocks or options in GTLS a year ago. As hedge sentiment fluctuates, there is a select group of major hedge fund managers who have been significantly adding to their stakes (or already accumulating large positions).
The largest stake in Chart Industries, Inc. (NYSE: GTLS) was owned by Fisher Asset Management, which announced its acquisition of $191.9 million worth of stock at the end of September. Driehaus Capital followed with $67.2 million. Other investors optimistic about the company include Jamco Investors, Prasada Capital Management and Incompass Capital Advisors. In terms of portfolio weights assigned to each position, Brasada Capital Management assigned the largest weight to Chart Industries, Inc. (NYSE: GTLS), about 2.48% of its 13F portfolio. Aubrey Capital Management is also relatively bullish on the stock, dedicating 2.17 percent of its 13F stock portfolio to GTLS.
Since Chart Industries, Inc. (NYSE: GTLS) Facing a dip in interest from the overall hedge fund industry, it’s easy to see that there were quite a few hedge companies dropping their entire holdings by the end of the third quarter. It is worth noting that Ira Unschuld’s Brant Point Investment Management has dropped the largest stake of the 750 funds monitored by Insider Monkey, with an estimated value of $7.3 million in stock, and Steve Cohen’s Point72 Asset Management was directly behind the move, with the fund making dumping about $2.3 million. Deserve. This bearish behavior is interesting, as the total interest of hedge funds was reduced by 5 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Chart Industries, Inc. (NYSE: GTLS) but of similar value. This stock is BlackLine, Inc. (NASDAQ: BL), Nielsen Holdings plc (NYSE: NLSN), The Descartes Systems Group Inc (NASDAQ: DSGX), Littelfuse, Inc. (NASDAQ: LFUS), Colfax Corporation (NYSE: CFX), nCino, Inc. (NASDAQ: NCNO) and Frontier Communications Parent Inc. (NASDAQ: FYBR). The market values of this group of shares correspond to the market capitalization of GTLS.
[table] Indicator, Number of HFs with Positions, Total Value of HF Positions (x1000), Change in HF Position BL, 18,326955, -2 NLSN, 24,1476397, -4 DSGX, 14,379447, -1 LFUS, 24,526040, – 3 CFX, 23,819033, -8 NCNO, 21,582525, -4 FYBR, 43,3539483,43 Medium, 23.9,1092840,3 [/table]
View the table here if you encounter formatting problems.
As you can see, these stocks had an average of 23.9 hedge funds with bullish positions and the average amount invested in these stocks was $1,093 million. That figure was $350 million in the case of the GTLS. Frontier Communications Parent Inc. (NASDAQ: FYBR) are the most popular stocks on this table. On the other hand, Descartes Systems Group Inc (NASDAQ: DSGX) is the least popular with just 14 bullish hedge fund positions. Chart Industries, Inc. is not considered a (NYSE: GTLS) The least popular stock in this group, yet hedge fund interest remains below average. The overall hedge fund sentiment score for GTLS is 38.2. Stocks with more hedge fund positions relative to other stocks and also relative to their historical range get a higher sentiment score. This is a rather negative sign and we prefer to spend our time researching the stocks that hedge funds are piling on. Our calculations showed that the 5 most popular hedge fund stocks returned 95.8% in 2019 and 2020, outperforming the S&P 500 ETF (SPY) by 40 percentage points. These stocks rose by 29.6% in 2021 and again outperformed the market by 3.6 percentage points. Unfortunately, GTLS was not as popular as these five stocks (hedge fund sentiment was quite bearish); GTLS investors were disappointed as the stock is back -16.5% since the end of September (as of 12/31) and has underperformed the market. If you are interested in investing in big cap stocks with huge upside potential, you should check out the top 5 popular hedge fund stocks as most of these stocks have already outperformed the market in 2021.
Get real-time alerts via email: Follow Chart Industries Inc (NASDAQ: GTLS)
Disclosure: none. This article was originally published on Insider Monkey.