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Legendary investors such as Jeffrey Talpins and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don't publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That's why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Impinj, Inc. (NASDAQ:PI) from the perspective of those elite funds.
Impinj, Inc. (NASDAQ:PI) has seen an increase in hedge fund interest recently. Our calculations also showed that PI isn't among the 30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's take a look at the recent hedge fund action surrounding Impinj, Inc. (NASDAQ:PI).
What does smart money think about Impinj, Inc. (NASDAQ:PI)?
Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 57% from the fourth quarter of 2018. By comparison, 11 hedge funds held shares or bullish call options in PI a year ago. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were adding to their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Daniel Patrick Gibson's Sylebra Capital Management has the most valuable position in Impinj, Inc. (NASDAQ:PI), worth close to $70.9 million, accounting for 4.2% of its total 13F portfolio. Coming in second is D E Shaw, led by D. E. Shaw, holding a $8.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish consist of Israel Englander's Millennium Management, Ken Griffin's Citadel Investment Group and Chet Kapoor's Tenzing Global Investors.