Hedge Funds Bullish On Align Technology Is At Its All Time High

Hedge fund sentiment towards Align Technology changed recently.

By Lucky 33

Hedge Funds Bullish On Align Technology Is At Its All Time High

The number of bullish hedge fund bets rose by 8 lately. Align Technology › ALGN › was in 57 hedge funds' portfolios at the end of the second quarter of 2021. The bullish number of hedge fund positions in this stock currently sits at its all time high. In the financial world there are a lot of methods stock traders employ to size up stocks. A duo of the most innovative methods are hedge fund & insider trading interest. Historically, those who follow the best picks of the best money managers can trounce their index-focused peers by a significant amount. 

Heading into the third quarter of 2021, a total of 57 of the hedge funds held long positions in this stock, a change of 16% from one quarter earlier. There were a total of 41 hedge funds with a bullish position in ALGN a year ago. With the smart money's sentiment swirling, there exists an "upper tier" of key hedge fund managers who were adding to their stakes significantly or already accumulated large positions.

Gabriel Plotkin's Melvin Capital Management has the most valuable position in Align Technology › ALGN › worth close to $386.2 million, amounting to 2.2% of its total 13F portfolio. The second most bullish fund manager is Brian Bares of Bares Capital Management, with a $378.8 million position; 6.7% of its 13F portfolio is allocated to the stock. Some other members of the smart money that hold long positions comprise Ken Fisher's Fisher Asset Management, Andreas Halvorsen's Viking Global & Gabriel Plotkin's Melvin Capital Management. In terms of the portfolio weights assigned to each position Bares Capital Management allocated the biggest weight to Align Technology, around 6.74% of its 13F portfolio. Iron Triangle Partners is also relatively very bullish on the stock, dishing out 4.09 percent of its 13F equity portfolio to ALGN.

As aggregate interest increased, some big names have jumped into Align Technology headfirst. Melvin Capital Management, managed by Gabriel Plotkin, created the biggest call position in Align Technology. Melvin Capital Management had $213.9 million invested in the company at the end of the quarter. Benjamin A. Smith's Laurion Capital Management also made a $43.6 million investment in the stock during the quarter. The following funds were also among the new ALGN investors: Leon Shaulov's Maplelane Capital, Larry Chen and Terry Zhang's Tairen Capital, and Andrew Dalrymple and Barry McCorkell's Aubrey Capital Management.

Overall hedge fund sentiment score for ALGN is 90. 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. 

Align Technology Invisalign ALGN headquarters

ALGN has outperformed the market in the last year with a return of +109.8%, while the SPY ETF gained +31.3%. In the last 3 month period, ALGN beat the market returning +9.6%, while SPY returned +1.1%. However, in the most recent 2 weeks ALGN has underperformed the stock market by returning -5.5%, while SPY returned -3.5%.

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