Portfolio Diversification
Rice Hall James & Associates Acquires Significant Stakes in Five Diverse Companies
Key Points
Beyond Rice Hall James' new Liquidity Services stake, other top institutions expanded their positions in Q2: Ameriprise Financial rose to 1,281,332 shares (+454,988), Punch & Associates to 909,743 shares (+254,875), Millennium Management to 357,707 shares (+209,807), Marshall Wace to 181,535 shares (+162,120) and Qube Research & Technologies to 283,301 shares (+154,925).
In Establishment Labs, hedge funds own about 72.91% of the stock, with Rice Hall James’ 560,935-share stake accounting for roughly 2.3% of its portfolio as ESTA ranks as the fund’s 5th-largest holding; several analysts upgraded ESTA in August (Citigroup to Buy with a $92 target, BTIG to Buy with $103, and Mizuho to Outperform with a $105 target).
For Varex Imaging, BNP Paribas Financial Markets increased its stake by 18.5% to 13,045 shares (about $113,000); Rockefeller Capital Management L.P. opened a new position, and Quarry LP added a new stake in the stock as well.
BioCryst Pharmaceuticals saw RA Capital Management establish a new stake valued at roughly $123.5 million; other notable buyers included Deerfield Management boosting to about 12.17 million shares and additional increases from Janus Henderson, Perceptive Advisors and Bank of America.
Maximus attracted several large inflows as Reinhart Partners boosted its position by about 131.8% to 1,982,415 shares, and Norges Bank opened a new stake in Maximus valued at roughly $60.4 million; other notable moves included River Road Asset Management increasing holdings and Goldman Sachs expanding its stake, with overall institutional ownership at about 97.21%.
Rice Hall James & Associates LLC made a series of bold new bets in the second quarter, led by a $23.8 million stake in Liquidity Services (NASDAQ: LQDT), according to Watchlist News. The firm bought 608,476 shares of the business-services company, making it the fund's 23rd-largest holding.
The California-based investment firm did not stop there. It also opened positions in Establishment Labs, Varex Imaging, BioCryst Pharmaceuticals, and Maximus — spreading new money across healthcare, medical imaging, and tech-enabled services, Watchlist News reported.
Liquidity Services Stake Draws Crowd of Institutional Buyers
Rice Hall James is not alone in warming up to Liquidity Services. Other major institutions grew their positions in Q2 as well, according to Watchlist News. Ameriprise Financial climbed to 1,281,332 shares, adding 454,988 shares. Punch & Associates added 254,875 shares to reach 909,743. Millennium Management picked up 209,807 shares, bringing its total to 357,707.
Smaller but still notable moves came from Marshall Wace, which added 162,120 shares to reach 181,535, and Qube Research & Technologies, which gained 154,925 shares to reach 283,301. The broad wave of buying signals growing confidence in the business-services provider across Wall Street.
Establishment Labs Lands as Fund's Fifth-Largest Holding
Rice Hall James built a 560,935-share stake in Establishment Labs Holdings (NASDAQ: ESTA), worth about $48.1 million, making it the firm's fifth-biggest position, Watchlist News reported. Hedge funds own roughly 72.91% of the medical-device company's shares. Rice Hall James alone accounts for about 2.3% of the portfolio allocation to ESTA.
Analyst enthusiasm for ESTA ran high in August. Citigroup upgraded the stock to Buy with a $92 price target. BTIG also moved to Buy with a $103 target. Mizuho rated it Outperform and set a $105 target. Those upgrades suggest analysts see meaningful upside ahead for the breast-implant and aesthetics company.
BioCryst and Varex Draw Major New Money From Big Funds
In BioCryst Pharmaceuticals, Rice Hall James added 2,332,043 shares worth about $23.3 million. But the bigger story was RA Capital Management opening a brand-new stake valued at roughly $123.5 million, according to Watchlist News. Deerfield Management boosted its position to about 12.17 million shares. Janus Henderson, Perceptive Advisors, and Bank of America also added to their holdings.
In Varex Imaging, Rice Hall James bought 1,445,853 shares worth roughly $15.1 million. BNP Paribas Financial Markets grew its stake by 18.5% to 13,045 shares, worth around $113,000. Rockefeller Capital Management and Quarry LP each opened fresh positions in the medical-imaging equipment maker.
Maximus Sees Massive Institutional Inflows Led by Norges Bank
Rice Hall James added 278,910 shares of Maximus, valued near $15.0 million, but larger moves defined the quarter for this government-services firm. Reinhart Partners grew its stake by about 131.8%, reaching 1,982,415 shares. Norway's sovereign wealth fund, Norges Bank, opened a brand-new position worth roughly $60.4 million, according to Watchlist News.
River Road Asset Management and Goldman Sachs also expanded their Maximus holdings during the quarter. With overall institutional ownership sitting at about 97.21%, nearly the entire float is held by big money managers — a sign of deep conviction in the company's business model.
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