In this article we will check out the progression of hedge fund sentiment towards Repligen Corporation (NASDAQ:RGEN) 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.
Repligen Corporation (NASDAQ:RGEN) shares haven't seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 35 hedge funds' portfolios at the end of the third quarter of 2021. Our calculations also showed that RGEN isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare RGEN to other stocks including Olaplex Holdings Inc. (NASDAQ:OLPX), WPP Plc (NASDAQ:WPP), and James Hardie Industries plc (NYSE:JHX) to get a better sense of its popularity.
Paul Marshall of Marshall Wace
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. Keeping this in mind we're going to take a look at the key hedge fund action surrounding Repligen Corporation (NASDAQ:RGEN).
Do Hedge Funds Think RGEN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards RGEN over the last 25 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
The largest stake in Repligen Corporation (NASDAQ:RGEN) was held by Select Equity Group, which reported holding $371.6 million worth of stock at the end of September. It was followed by 12 West Capital Management with a $295.2 million position. Other investors bullish on the company included Impax Asset Management, Marshall Wace LLP, and Echo Street Capital Management. In terms of the portfolio weights assigned to each position 12 West Capital Management allocated the biggest weight to Repligen Corporation (NASDAQ:RGEN), around 13.47% of its 13F portfolio. Miura Global Management is also relatively very bullish on the stock, dishing out 3.81 percent of its 13F equity portfolio to RGEN.
Because Repligen Corporation (NASDAQ:RGEN) has experienced bearish sentiment from the entirety of the hedge funds we track, it's easy to see that there was a specific group of money managers that decided to sell off their positions entirely heading into Q4. It's worth mentioning that Brandon Haley's Holocene Advisors dumped the largest stake of the "upper crust" of funds monitored by Insider Monkey, valued at an estimated $51.3 million in stock. Joseph Edelman's fund, Perceptive Advisors, also dropped its stock, about $26.5 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's also examine hedge fund activity in other stocks similar to Repligen Corporation (NASDAQ:RGEN). These stocks are Olaplex Holdings Inc. (NASDAQ:OLPX), WPP Plc (NASDAQ:WPP), James Hardie Industries plc (NYSE:JHX), Molina Healthcare, Inc. (NYSE:MOH), Quanta Services Inc (NYSE:PWR), IDEX Corporation (NYSE:IEX), and UDR, Inc. (NYSE:UDR). This group of stocks' market valuations are closest to RGEN's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OLPX,52,710529,52 WPP,5,15930,-1 JHX,5,13962,1 MOH,28,1539147,-6 PWR,38,1526790,-2 IEX,18,1047528,-4 UDR,20,353763,-4 Average,23.7,743950,5.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.7 hedge funds with bullish positions and the average amount invested in these stocks was $744 million. That figure was $1500 million in RGEN's case. Olaplex Holdings Inc. (NASDAQ:OLPX) is the most popular stock in this table. On the other hand WPP Plc (NASDAQ:WPP) is the least popular one with only 5 bullish hedge fund positions. Repligen Corporation (NASDAQ:RGEN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for RGEN is 64.5. 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. 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 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately RGEN wasn't nearly as popular as these 5 stocks and hedge funds that were betting on RGEN were disappointed as the stock returned -0.9% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Get real-time email alerts: Follow Repligen Corp (NASDAQ:RGEN)
Disclosure: None. This article was originally published at Insider Monkey.