Hedge funds pile up in Air Transport Services Group Inc. (ATSG)
Out of the thousands of stocks that are currently traded in the market, it is difficult to identify which ones will truly generate strong returns. Hedge funds and institutional investors spend millions of dollars on MBA and PhD analysts, who are industry experts and well connected to other industry and media insiders on top of that of that. Individual investors can rely on hedge funds employing these talents and can thus benefit from their vast resources and knowledge. We analyze quarterly 13F deposits from nearly 900 hedge funds, and by examining the smart money sentiment that surrounds a stock, we can determine if it has the potential to beat the market in the long term. Therefore, let’s take a closer look at what Air Transport Services Group Inc.’s (NASDAQ: ATSG) smart money thinks.
Air Transport Services Group Inc. (NASDAQ: ATSG) has seen an increase in interest from hedge funds lately. Air Transport Services Group Inc. (NASDAQ: ATSG) was listed in 23 hedge fund portfolios at the end of the third quarter of 2021. The all-time high for this statistic is 22. This signifies the bullish number of hedge fund positions in this. title. is currently at its highest level. There were 19 hedge funds in our database with ATSG holdings at the end of June. Our calculations also showed that ATSG is not in the top 30 most popular stocks among hedge funds (click for Q3 rank).
Richard Driehaus of Driehaus Capital
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium prices have more than doubled over the past year, so we’re going through lists like the top 10 electric vehicle stocks to pick the next Tesla that will deliver 10x performance. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. With that in mind, let’s take a look at the key hedge fund action encompassing Air Transport Services Group Inc. (NASDAQ: ATSG).
Do hedge funds think ATSG is a good stock to buy now?
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21% from the previous quarter. The graph below shows the number of hedge funds with a bullish position in ATSG over the past 25 quarters. With the whirlwind of hedge fund sentiment, there is a select group of notable hedge fund managers who were significantly increasing their holdings (or already building up large positions).
The largest stake in Air Transport Services Group Inc. (NASDAQ: ATSG) was held by Polar Capital, which said it held $ 21.2 million in shares at the end of September. It was followed by Private Capital Management with a position of $ 19.7 million. Other bullish investors for the company included Driehaus Capital, Intrinsic Edge Capital and Mountaineer Partners Management. In terms of the portfolio weights assigned to each position, Moab Capital Partners assigned the largest weight to Air Transport Services Group Inc. (NASDAQ: ATSG), approximately 7.02% of its 13F portfolio. Mountaineer Partners Management is also relatively very bullish on the stock, distributing 4.78% of its 13F equity portfolio to ATSG.
As one might reasonably expect, the major hedge funds themselves were innovating. Driehaus Capital, managed by Richard Driehaus, initiated the most valuable position in Air Transport Services Group Inc. (NASDAQ: ATSG). Driehaus Capital had invested $ 12.8 million in the company at the end of the quarter. Mark Coe’s Intrinsic Edge Capital also initiated a $ 10 million position during the quarter. Other funds with brand new ATSG positions are Peter Rathjens, Bruce Clarke and Arrowstreet Capital by John Campbell, ExodusPoint Capital by Michael Gelband and Roubaix Capital by Christopher Hillary.
Let’s also look at hedge fund activity in other stocks – not necessarily in the same industry as Air Transport Services Group Inc. (NASDAQ: ATSG) but of similar value. We’ll be looking at Score Media and Gaming Inc. (NASDAQ: SCR), Costamare Inc (NYSE: CMRE), Li-Cycle Holdings Corp. (NYSE: LICY), Silk Road Medical, Inc. (NASDAQ: SILK), Banner Corporation (NASDAQ: BANR), Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) and Xencor Inc (NASDAQ: XNCR). The market capitalizations of this group of stocks are closest to the market capitalization of ATSG.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF SCR, 27.651292,19 CMRE, 12.65112, -5 LICY, 28.290424,28 SILK, 16.110886.3 BANR, 12 42902.1 GDYN, 18.201558.3 XNCR, 17.203181.0 Medium, 18.6.223622.7 [/table]
Check the table here if you have formatting issues.
As you can see, these stocks had an average of 18.6 hedge funds with bullish positions and the average amount invested in these stocks was $ 224 million. That figure was $ 117 million in the case of ATSG. Li-Cycle Holdings Corp. (NYSE: LICY) is the most popular stock in this chart. On the other hand, Costamare Inc (NYSE: CMRE) is the least popular with only 12 bullish hedge fund positions. Air Transport Services Group Inc. (NASDAQ: ATSG) is not the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for ATSG is 73.4. 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 positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. 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 31.1% in 2021 through December 9 and again beat the market by 5.1 percentage points. Unfortunately, ATSG was not as popular as these 5 stocks and the hedge funds that bet on ATSG were disappointed as the stock has returned 7.9% since the end of September (through 9/12) and has 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 many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Insider Monkey.