Published on 12 Jan 2022 on Insider Monkey via Yahoo Finance

Hedge Funds Aren’t Crazy About Advanced Drainage Systems Inc. (WMS) Anymore

In this article we are going to use hedge fund sentiment as a tool and determine whether Advanced Drainage Systems Inc. (NYSE:WMS) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds' picks don't beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.

Advanced Drainage Systems Inc. (NYSE:WMS) investors should be aware of a decrease in activity from the world's largest hedge funds in recent months. Advanced Drainage Systems Inc. (NYSE:WMS) was in 21 hedge funds' portfolios at the end of September. The all time high for this statistic is 29. There were 26 hedge funds in our database with WMS holdings at the end of June. Our calculations also showed that WMS isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

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. Now let's take a peek at the new hedge fund action encompassing Advanced Drainage Systems Inc. (NYSE:WMS).