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Did Hedge Funds Drop The Ball On World Acceptance Corp. (WRLD) ? How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding World Acceptance Corp. (NASDAQ:WRLD). World Acceptance Corp. (NASDAQ:WRLD)shareholders have witnessed a decrease in support from the world's most elite money managers lately. Our calculations also showed that WRLD isn't among the30 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. We're going to take a look at the fresh hedge fund action regarding World Acceptance Corp. (NASDAQ:WRLD). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -19% from one quarter earlier. On the other hand, there were a total of 11 hedge funds with a bullish position in WRLD a year ago. With the smart money's capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions). The largest stake in World Acceptance Corp. (NASDAQ:WRLD) was held byCAS Investment Partners, which reported holding $79.4 million worth of stock at the end of March. It was followed by Nantahala Capital Management with a $75.9 million position. Other investors bullish on the company included Renaissance Technologies, Bronte Capital, and General Equity Partners. Seeing as World Acceptance Corp. (NASDAQ:WRLD) has faced bearish sentiment from the aggregate hedge fund industry, it's easy to see that there exists a select few funds who sold off their full holdings by the end of the third quarter. At the top of the heap, C. Jonathan Gattman'sCloverdale Capital Managementcut the largest stake of the 700 funds watched by Insider Monkey, totaling close to $10.2 million in call options. D. E. Shaw's fund,D E Shaw, also dumped its call options, about $1.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 3 funds by the end of the third quarter. Let's check out hedge fund activity in other stocks similar to World Acceptance Corp. (NASDAQ:WRLD). These stocks are Tennant Company (NYSE:TNC), Trupanion Inc (NASDAQ:TRUP), Southside Bancshares, Inc. (NASDAQ:SBSI), and Sandy Spring Bancorp Inc. (NASDAQ:SASR). This group of stocks' market valuations resemble WRLD's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TNC,15,83127,5 TRUP,13,154788,3 SBSI,7,65153,1 SASR,14,80840,1 Average,12.25,95977,2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $239 million in WRLD's case. Tennant Company (NYSE:TNC) is the most popular stock in this table. On the other hand Southside Bancshares, Inc. (NASDAQ:SBSI) is the least popular one with only 7 bullish hedge fund positions. World Acceptance Corp. (NASDAQ:WRLD) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on WRLD as the stock returned 31.7% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On AcelRx Pharmaceuticals Inc (ACRX) Hedge funds and other investment firms run by legendary investors like Israel Englander, Jeffrey Talpins and Ray Dalio are entrusted to manage billions of dollars of accredited investors' money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space. AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)was in 11 hedge funds' portfolios at the end of March. ACRX has experienced an increase in hedge fund interest lately. There were 9 hedge funds in our database with ACRX holdings at the end of the previous quarter. Our calculations also showed that ACRX isn't among the30 most popular stocks among hedge funds. In the financial world there are tons of gauges stock traders employ to analyze publicly traded companies. A couple of the most under-the-radar gauges are hedge fund and insider trading activity. We have shown that, historically, those who follow the top picks of the top money managers can beat the broader indices by a very impressive margin (see the details here). Let's take a gander at the key hedge fund action encompassing AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of 22% from the fourth quarter of 2018. By comparison, 3 hedge funds held shares or bullish call options in ACRX a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Millennium Managementwas the largest shareholder of AcelRx Pharmaceuticals Inc (NASDAQ:ACRX), with a stake worth $3 million reported as of the end of March. Trailing Millennium Management was Laurion Capital Management, which amassed a stake valued at $2.9 million. D E Shaw, Moore Global Investments, and ExodusPoint Capital were also very fond of the stock, giving the stock large weights in their portfolios. With a general bullishness amongst the heavyweights, some big names were breaking ground themselves.Citadel Investment Group, managed by Ken Griffin, assembled the biggest position in AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). Citadel Investment Group had $0.4 million invested in the company at the end of the quarter. Andrew Weiss'sWeiss Asset Managementalso initiated a $0.1 million position during the quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) but similarly valued. We will take a look at Atlantic Power Corp (NYSE:AT), Hurco Companies, Inc. (NASDAQ:HURC), Scorpio Bulkers Inc (NYSE:SALT), and Atento SA (NYSE:ATTO). This group of stocks' market caps match ACRX's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AT,12,32454,5 HURC,7,51858,-2 SALT,7,16478,-2 ATTO,9,6383,0 Average,8.75,26793,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8.75 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $10 million in ACRX's case. Atlantic Power Corp (NYSE:AT) is the most popular stock in this table. On the other hand Hurco Companies, Inc. (NASDAQ:HURC) is the least popular one with only 7 bullish hedge fund positions. AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately ACRX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on ACRX were disappointed as the stock returned -30.7% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Commercial Metals Company (CMC) Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat the S&P 500 Index ETF by more than 6 percentage points so far this year. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at Commercial Metals Company (NYSE:CMC) from the perspective of those elite funds. Commercial Metals Company (NYSE:CMC)shareholders have witnessed a decrease in support from the world's most elite money managers recently.CMCwas in 11 hedge funds' portfolios at the end of March. There were 17 hedge funds in our database with CMC holdings at the end of the previous quarter. Our calculations also showed that cmc isn't among the30 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. We're going to take a glance at the recent hedge fund action encompassing Commercial Metals Company (NYSE:CMC). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -35% from the fourth quarter of 2018. By comparison, 18 hedge funds held shares or bullish call options in CMC a year ago. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions). Among these funds,Luminus Managementheld the most valuable stake in Commercial Metals Company (NYSE:CMC), which was worth $98.6 million at the end of the first quarter. On the second spot was Citadel Investment Group which amassed $70.4 million worth of shares. Moreover, Highline Capital Management, Royce & Associates, and GLG Partners were also bullish on Commercial Metals Company (NYSE:CMC), allocating a large percentage of their portfolios to this stock. Because Commercial Metals Company (NYSE:CMC) has witnessed falling interest from the aggregate hedge fund industry, it's safe to say that there was a specific group of fund managers that elected to cut their positions entirely in the third quarter. It's worth mentioning that Cliff Asness'sAQR Capital Managementsaid goodbye to the biggest investment of all the hedgies watched by Insider Monkey, valued at an estimated $9.7 million in stock. Dmitry Balyasny's fund,Balyasny Asset Management, also dropped its stock, about $4.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 6 funds in the third quarter. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Commercial Metals Company (NYSE:CMC) but similarly valued. These stocks are Granite Construction Incorporated (NYSE:GVA), Colony Credit Real Estate, Inc. (NYSE:CLNC), Evertec Inc (NYSE:EVTC), and Gray Television, Inc. (NYSE:GTN). All of these stocks' market caps are similar to CMC's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GVA,15,85145,4 CLNC,6,19319,-1 EVTC,21,267101,0 GTN,27,303277,1 Average,17.25,168711,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $169 million. That figure was $275 million in CMC's case. Gray Television, Inc. (NYSE:GTN) is the most popular stock in this table. On the other hand Colony Credit Real Estate, Inc. (NYSE:CLNC) is the least popular one with only 6 bullish hedge fund positions. Commercial Metals Company (NYSE:CMC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CMC wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); CMC investors were disappointed as the stock returned -6.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About NextGen Healthcare, Inc. (NXGN) We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do (like Peltz's recent General Electric losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards NextGen Healthcare, Inc. (NASDAQ:NXGN). IsNextGen Healthcare, Inc. (NASDAQ:NXGN)the right investment to pursue these days? Prominent investors are turning less bullish. The number of long hedge fund bets were cut by 2 recently. Our calculations also showed that NXGN isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's take a look at the key hedge fund action surrounding NextGen Healthcare, Inc. (NASDAQ:NXGN). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from one quarter earlier. By comparison, 0 hedge funds held shares or bullish call options in NXGN a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions). According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Cliff Asness'sAQR Capital Managementhas the largest position in NextGen Healthcare, Inc. (NASDAQ:NXGN), worth close to $10.6 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Peter Rathjens, Bruce Clarke and John Campbell ofArrowstreet Capital, with a $8.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions comprise D. E. Shaw'sD E Shaw, Paul Marshall and Ian Wace'sMarshall Wace LLPand Israel Englander'sMillennium Management. Judging by the fact that NextGen Healthcare, Inc. (NASDAQ:NXGN) has experienced declining sentiment from hedge fund managers, we can see that there was a specific group of hedge funds that decided to sell off their full holdings in the third quarter. It's worth mentioning that Steve Cohen'sPoint72 Asset Managementsaid goodbye to the largest position of all the hedgies monitored by Insider Monkey, valued at about $6.8 million in stock. Jim Simons's fund,Renaissance Technologies, also cut its stock, about $0.3 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 2 funds in the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as NextGen Healthcare, Inc. (NASDAQ:NXGN) but similarly valued. We will take a look at Constellium NV (NYSE:CSTM), Neenah, Inc. (NYSE:NP), Patrick Industries, Inc. (NASDAQ:PATK), and Cryolife Inc (NYSE:CRY). This group of stocks' market caps are similar to NXGN's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CSTM,41,264118,9 NP,7,12403,3 PATK,17,91534,-7 CRY,13,25250,2 Average,19.5,98326,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $98 million. That figure was $31 million in NXGN's case. Constellium NV (NYSE:CSTM) is the most popular stock in this table. On the other hand Neenah, Inc. (NYSE:NP) is the least popular one with only 7 bullish hedge fund positions. NextGen Healthcare, Inc. (NASDAQ:NXGN) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on NXGN as the stock returned 12.7% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Cryolife Inc (CRY) 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 Cryolife Inc (NYSE:CRY) from the perspective of those elite funds. Cryolife Inc (NYSE:CRY)was in 13 hedge funds' portfolios at the end of March. CRY has seen an increase in hedge fund sentiment lately. There were 11 hedge funds in our database with CRY holdings at the end of the previous quarter. Our calculations also showed that CRY isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's analyze the fresh hedge fund action regarding Cryolife Inc (NYSE:CRY). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18% from one quarter earlier. By comparison, 7 hedge funds held shares or bullish call options in CRY a year ago. With hedgies' capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions). Among these funds,Royce & Associatesheld the most valuable stake in Cryolife Inc (NYSE:CRY), which was worth $10.8 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $5.6 million worth of shares. Moreover, SG Capital Management, Millennium Management, and Highland Capital Management were also bullish on Cryolife Inc (NYSE:CRY), allocating a large percentage of their portfolios to this stock. Consequently, key hedge funds were leading the bulls' herd.SG Capital Management, managed by Ken Grossman and Glen Schneider, initiated the biggest position in Cryolife Inc (NYSE:CRY). SG Capital Management had $2.2 million invested in the company at the end of the quarter. Joseph Edelman'sPerceptive Advisorsalso initiated a $1.5 million position during the quarter. The following funds were also among the new CRY investors: John Overdeck and David Siegel'sTwo Sigma Advisors, Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital, and Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital. Let's now take a look at hedge fund activity in other stocks similar to Cryolife Inc (NYSE:CRY). These stocks are Universal Insurance Holdings, Inc. (NYSEAMEX:UVE), Golub Capital BDC Inc (NASDAQ:GBDC), Huron Consulting Group Inc. (NASDAQ:HURN), and Skyline Champion Corporation (NYSE:SKY). This group of stocks' market valuations are similar to CRY's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UVE,13,38385,-7 GBDC,8,29834,-2 HURN,11,25163,-2 SKY,24,218938,1 Average,14,78080,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $25 million in CRY's case. Skyline Champion Corporation (NYSE:SKY) is the most popular stock in this table. On the other hand Golub Capital BDC Inc (NASDAQ:GBDC) is the least popular one with only 8 bullish hedge fund positions. Cryolife Inc (NYSE:CRY) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CRY as the stock returned 6.4% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Universal Insurance Holdings, Inc. (UVE) A Good Stock To Buy? Before we spend days researching a stock idea we like to take a look at how hedge funds and billionaire investors recently traded that stock. The S&P 500 Index ETF (SPY) lost 2.6% in the first two months of the second quarter. Ten out of 11 industry groups in the S&P 500 Index lost value in May. The average return of a randomly picked stock in the index was even worse (-3.6%). This means you (or a monkey throwing a dart) have less than an even chance of beating the market by randomly picking a stock. On the other hand, the top 20 most popular S&P 500 stocks among hedge funds not only generated positive returns but also outperformed the index by about 3 percentage points through May 30th. In this article, we will take a look at what hedge funds think about Universal Insurance Holdings, Inc. (NYSEAMEX:UVE). IsUniversal Insurance Holdings, Inc. (NYSEAMEX:UVE)a bargain? Investors who are in the know are turning less bullish. The number of bullish hedge fund positions fell by 7 lately. Our calculations also showed that UVE isn't among the30 most popular stocks among hedge funds. According to most stock holders, hedge funds are assumed to be worthless, old investment tools of the past. While there are more than 8000 funds with their doors open today, Our experts choose to focus on the crème de la crème of this group, approximately 750 funds. These investment experts oversee the majority of all hedge funds' total capital, and by following their best stock picks, Insider Monkey has identified several investment strategies that have historically beaten the market. Insider Monkey's flagship hedge fund strategy defeated the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to take a gander at the key hedge fund action surrounding Universal Insurance Holdings, Inc. (NYSEAMEX:UVE). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -35% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards UVE over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) was held byAQR Capital Management, which reported holding $14.2 million worth of stock at the end of March. It was followed by Arrowstreet Capital with a $7.6 million position. Other investors bullish on the company included Stadium Capital Management, GLG Partners, and Royce & Associates. Due to the fact that Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) has experienced declining sentiment from the smart money, it's safe to say that there exists a select few hedge funds that slashed their positions entirely in the third quarter. At the top of the heap, Brandon Haley'sHolocene Advisorscut the largest position of all the hedgies followed by Insider Monkey, worth close to $0.6 million in stock, and Benjamin A. Smith's Laurion Capital Management was right behind this move, as the fund dropped about $0.4 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 7 funds in the third quarter. Let's also examine hedge fund activity in other stocks similar to Universal Insurance Holdings, Inc. (NYSEAMEX:UVE). We will take a look at Golub Capital BDC Inc (NASDAQ:GBDC), Huron Consulting Group Inc. (NASDAQ:HURN), Skyline Champion Corporation (NYSE:SKY), and Esperion Therapeutics, Inc. (NASDAQ:ESPR). This group of stocks' market caps are closest to UVE's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GBDC,8,29834,-2 HURN,11,25163,-2 SKY,24,218938,1 ESPR,14,211689,3 Average,14.25,121406,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $121 million. That figure was $38 million in UVE's case. Skyline Corporation (NYSE:SKY) is the most popular stock in this table. On the other hand Golub Capital BDC Inc (NASDAQ:GBDC) is the least popular one with only 8 bullish hedge fund positions. Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately UVE wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); UVE investors were disappointed as the stock returned -10% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Natural Gas Price Prediction – Prices Slip but Rise 5.4% for the Week Natural gas prices moved sideways on Friday finishing the week up 5.4%. A smaller than expected build in natural gas inventories reported this week by the Department of Energy gave prices a boost. Demand increased this week as the electric power sector drew more for turbines, and production during the week was flat. Natural gas prices moved higher this week but edged slightly lower on Friday following gains on Thursday. Prices made a higher high and a lower high but were unable to close the session in the black. Medium term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occur as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices. The RSI is moving sideways and printing a reading of 43, which is in the middle of the neutral range and reflects consolidation. The EIA reports that production and supply are unchanged. The average total supply of natural gas remained the same as in the previous report week, averaging 94.2 Bcf per day. Dry natural gas production grew by 1% compared with the previous report week. Average net imports from Canada decreased by 2% from last week. Rising dry natural gas production compensated for lower Canadian imports that were the result of a shutdown on the 1.8 Bcf per day Alliance pipeline. Demand increases are driven by the electric power sector. Total U.S. consumption of natural gas rose by 4% compared with the previous report week, according to data from the EIA. Natural gas consumed for power generation climbed by 8% week over week amid temperatures that were slightly warmer than normal in the Southeast region, where electricity is used for cooling demand. Industrial sector consumption decreased by 2% week over week. In the residential and commercial sectors, consumption declined by 1%. Natural gas exports to Mexico were the same as last report week, averaging 5.2 Bcf per day. Thisarticlewas originally posted on FX Empire • AUD/USD Price Forecast – Aussie forms bearish candle • Gold Technical Analysis – How do the Experts Trade Gold • EUR/USD Price Forecast – Euro falls yet finds support • Natural Gas Price Fundamental Daily Forecast – Needs to Hold $2.249 to $2.222 or New Lows Likely Over Near-Term • EUR/USD Mid-Session Technical Analysis for July 1, 2019 • USD/CAD Daily Forecast – Pair Rebounding from 3-Month Low amid Renewed Trade Hopes
Mets land impressive draft haul with addition of third-rounder, Matt Allan SECAUCUS, NJ - JUNE 03: Brett Baty is greeted by Major League Baseball Commissioner Robert D. Manfred Jr. after being selected 12th overall by the New York Mets during the 2019 Major League Baseball Draft at Studio 42 at the MLB Network on Monday, June 3, 2019 in Secaucus, New Jersey. (Photo by Alex Trautwig/MLB Photos via Getty Images) The 2019 Mets may be floundering, but they at least have three new touted prospects in the system. The team secured one of the best 2019 draft classes Friday by signing third-round pick, Matt Allan, a high school pitcher from Florida, for $2.5 million, according to a source. Allan slipped to the third round due to concerns about his asking price. The Mets, whose drafts are run by VP of International and amateur scouting, Tommy Tanous, and amateur scouting director, Marc Tramuta, signed three of MLB.com’s top 36 draft-eligible players. “It’s unreal. I don’t think I could get the smile off my face,” Allan said at Citi Field after signing his contract. “Even just kind of watching and looking at everything here just makes me want to be here and help the team. I’m excited.” Allan entered the draft as a potential first-round pick, but he wanted a large figure to forego his commitment to the University of Florida. ESPN and Baseball American had Allan ranked as the top preps pitcher in the draft, and MLB.com rated him as the No. 13 prospect. Some teams at the back end of the first round had interest in Allan, but they decided not to select the righty. The Mets used their first two picks on a high school hitter and pitcher in Brett Baty and Josh Wolf, and then decided they would go for the home-run pick. Chasing Allan marked a calculate risk since the Mets would have to be assured they could meet his demands, and they would have to alter the rest of their draft. Selecting Allan forced the Mets to use the rest of their picks in the first 10 rounds on college seniors they knew they could sign for less than slot value. That saved money would then be used to try to entice Allan to sign. Mets officials were confident throughout the process they would be able to save enough money to make the selection work. Sources said first-year general manager Brodie Van Wagenen, a former agent, helped to make it all happen. Mets COO Jeff Wilpon also had to OK the team spending extra to land Allan although the team did not exceed the five percent overage teams are allowed before they have to forfeit draft picks. Story continues The Mets worked with Allan’s agent, Scott Boras, to make the deal come together. “We’re very excited. (Allan) is a tremendous high school talent, somebody we really manipulated our entire draft to try to bring him to the organization,” Van Wagenen said before the Mets hosted the Braves. “We think this particular pitcher has a chance to be a No. 1 or no. 2 starter. An opportunity like this doesn’t present itself very often, and to take a very unique and aggressive draft strategy with picks four to 10 is something we were pretty eager and excited to pull off.” Allan primarily relies on his fastball and curveball, but is hoping to polish his change-up. He pitched a perfect game while tallying 17 strikeouts this year. “Ultimately, my goal was to make it to the big leagues and make it here and stay there,” Allan said. “The situation put in front of me was too good to pass up.” Adding three talented prospects will be quite helpful since the Mets needed to add some new pieces to their system after Van Wagenen often dipped into the prospect well in the offseason in his attempt to bolster the roster. He traded two recent first-rounders in Jarred Kelenic and Justin Dunn to land Edwin Diaz and Robinson Cano, and that deal may prove to be a colossal mistake . Kelenic has the tools to be an All-Star, and Diaz and Cano have both underperformed with Diaz blowing his fourth save Thursday. League sources have mentioned how awful the deal already looks for the Mets. Van Wagenen also traded six prospects to acquire reserves J.D. Davis and Keon Broxton, the latter of which has already been traded to another team. Allan and Baty should soon be ranked among the team’s top 10 prospects. “The scouting department did tremendous job of identifying and the motivation to sign this kid this year,” Van Wagenen said of Allan. “We made a compelling pitch that we were the right fit, and the two sides are seeing things the same way that good things can happen.”
Crypto Trader Warns of 40% Bitcoin Price Drop Before Monster Bull Run Bitcoinwas on a massive tear and theparabolic runwas unstoppable as the crypto reached $13,000. It has declined since but is up on the weekly timeframe. While many long-term investors are euphoric over this juggernaut ascent, some experienced traders are starting to feel anxious. The trend reversal is so strong that a significant retracement is currently lurking. One popular day trader has a resounding argument that supports this bias. A respected figure in the CryptoTwitter community namedTrader X0who boasts 13,000 Twitter followers looked at bitcoin’s daily chart and saw a striking similarity between the 2017 disbelief rally and the recent parabolic rampage. On June 23, the analyst shared his thoughts on Twitter to show the possible area where the leading cryptocurrency might correct. According to the trader, bitcoin went above the range high of $12,000 as the possible last leg up. This is in line with the 2017 disbelief fractal that pushed bitcoin from $5,000 to nearly $8,000 in a couple of weeks (labeled as 3 and 4 on the left-hand side of the screen). The analyst also said that this would “wipe out early shorts.” Market structures from the 2017 bull run and the most recent reversal look eerily similar: Read the full story on CCN.com.
Possible Fannie, Freddie IPO whets Wall Street's appetite Wall Streetis gearing up for theTrump administration’splan to reform Fannie Mae and Freddie Mac and the possibility that the mortgage giants will be looking to recapitalize with massive public offerings, FOX Business Network has learned. The nation’s largest bank, J.P. Morgan Chase & Co., hosted a private meeting on Tuesday with 75 investors to discuss efforts to overhaul both outfits, which play a critical role inhousingfinancebut have been wards of the government since the 2008 financial crisis, according to people with knowledge of the matter. The meeting also included members of investment bank Moelis & Co., which has long advocated ending Fannie and Freddie’s conservatorship and allowing the outfits to raise capital and return to their former status as private companies, these people say. A partner at the law firm of Kirkland & Ellis LLP, who specializes in mergers and acquisition, also presented to the group, they add. The JPMorgan meeting comes at a critical time for Fannie and Freddie, also known as government sponsored enterprises or GSEs. Both were created by acts of Congress and regulated by the federal government to promote homeownership, even as they operated as private companies with publicly traded stocks. But their excessive risk taking during the housing bubble led to their near insolvency in 2008, and to avoid a massive disruption to the housing market, the federal government enacted a bailout and placed both of them into something known as conservatorship. Since then they have operated essentially as wards of the state. More recently, Fannie and Freddie have rebuilt their balance sheets and returned to profitability, and now the Trump administration is drawing up a plan to possibly recapitalize and release them as private companies. The timing and exact details of the administration plan is unknown. Moreover, the effort could be delayed indefinitely given the political issues surrounding a substantial change to the housing market. But government housing officials have publicly stated that reforming Fannie and Freddie is a priority and they are weighing an eventual public offering that could mean an equity sale of as much as $100 billion so the mortgage entities can withstand a future crisis without a government bailout. The Treasury Department is expected to release its reform blueprint in the coming weeks. Meanwhile, word of the massive stock sale, first reported by FOX Business, has set Wall Street scrambling to figure out how the move might impact the housing market as well as Fannie and Freddie preferred and common shareholders. Both issues of stock have soared in recent months as word of the overhaul spread. During the JPMorgan meeting, the possible recapitalization and public offering was one of the main issues under discussion, these people add. The size and scope of the plan will be determined by the Trump administration’s Federal Housing Finance Agency chief, Mark Calabria, and Treasury Secretary Steve Mnuchin, neither of whom were present. But participants discussed how the government will end its siphoning of the GSE’s profits, (also known as the net-worth sweep) an initial public offering (IPO) of tens of billions of dollars and other ways to raise capital, said one person with knowledge of the meeting. This person said the general consensus was the capital raise would be good for Fannie and Freddie’s preferred shareholders, who have a higher priority over common shareholders in such a scenario. Common stockholders, however, could be severely diluted with a big stock sale and thus the value of their holdings wouldn’t grow or would possibly decline. Fannie and Freddie common shares currently trade as penny stocks, at $2.70 and $2.60, respectively, while some Fannie Mae preferred shares trade as high as $22, and Freddie preferred shares trade around $11 a share. The meeting was moderated by JPMorgan’s managing director and co-head of distressed trading Joseph Saad and featured four panelists, including Moelis managing directors Thain Carlston, Michael DiYanni and senior adviser Landon Parsons. Sophia Hudson, a partner at the law firm of Kirkland & Ellis, was also on the panel. Press officials for JPMorgan and Moelis declined comment; a spokeswoman for Calabria declined comment as did a Treasury spokeswoman. Kirkland & Ellis didn’t return a call for comment. Wall Street bankers have spoken with Trump administration officials informally on the broad outlines of the stock deal that will finance the final leg of Fannie and Freddie’s recapitalization plan, according to financial executives and administration officials with knowledge of the matter. They described the possible stock sale as something of a hybrid between a traditional IPO and a secondary offering of stock, or a “re-IPO” since both agencies already have outstanding shares even if the stock sales will amount to a watershed moment in their post-conservatorship existence. The largest IPO in history is Alibaba Group’s $25 billion sale of stock in 2014. The largest secondary offering appears to be Petroleo Brasileiro, also known as Petrobras. The Brazilian government-controlled oil and gas company raised $70 billion in a follow-on sale of stock in 2010, so the Fannie and Freddie offerings could be in line with these megadeals. Many analysts remain skeptical that the government will go through with the stock sales and radically alter the GSEs, particularly as the 2020 presidential elections loom. Fannie and Freddie are essential to the 30-year fixed-rate mortgage market in that they buy mortgages from financial institutions and free up capital so the banks can keep lending. Without the GSEs involvement, most banks would not make such long-term loans, particularly to middle- and working-class Americans with lower credit scores, given the high risk involved. As the notion that the GSEs could be privatized with minimal government support, mortgage rates has recently spiked — something that has concerned housing advocates about the GSE overhaul. Another hurdle: Any substantive reform may need congressional action, and that could lead to gridlock on the issue as well. Congressional Republicans and the administration, for example, would like to scale back Fannie and Freddie’s footprint to avoid another 2008 meltdown by demanding better credit quality in the loans the GSEs purchase from banks. CLICK HERE TO GET THE FOX BUSINESS APP Democrats, including most of the current 2020 presidential contenders, would like to expand Fannie and Freddie’s mission so banks will make mortgages to people who might not normally qualify because of lower credit scores. “What Republicans will accept and what Democrats want is very different and there is no way to bridge the gap,” said independent analyst Chris Whalen. “I can see a scenario where Fannie and Freddie will stay in conservatorship forever.” Related Articles • Fmr. Prosecutor Suing Obama, Sharpton for Fueling Race War • Former A.G. Michael Mukasey: Comey Stepped Way Outside His Job • These Countries Could Leave the EU Next
Will Facebook's Libra Become the Go-To Payment System Where Banks Fall Short? Europeans and Americans have theirVisaand Mastercards. For everyone else, here comes… Libra? Facebook’s newLibra digital currencyis aimed at a huge potential market for financial services—the entire developing world, with billions of people in areas such as India and Sub-Saharan Africa, where financial services are often less sophisticated and many people don’t use traditional banking accounts. Whether or not these billions will want to make the switch is anyone’s guess. The U.S., Europe, and most developed economies already have large, efficient payment systems. These allow people to buy and sell goods in real time and send money person-to-person through services likeZelle, PayPal, and Venmo. That’s why the companies that joined Facebook’s Libra association, as well as nonprofits involved with similar projects, say Libra’s potential lies elsewhere. In developing countries, many tens of millions still live far from a bank or money transfer center, or currently use a currency prone to inflation or volatility. Libra could address this issue by providing a universal, stable currency that is easily transferrable between persons or businesses without involving setting up an entire payment infrastructure. It also potentially could work at a lower cost. In the last decade, citizens of developing countries have widely adopted cellphones as a way to store money, sending text message-based payments either to businesses or persons. It’s been a broadly heralded development among policymakers and nonprofits focused on poverty because bank accounts are hard to come by or are too expensive. “The entire continent of Africa skipped right over cards and went straight into mobile payments,” said Sanjay Sakhrani, an industry analyst with Keefe, Bruyette & Woods, who covers Visa, Mastercard, PayPal, andWestern Union. But these payment systems are often constrained by the type of cellphone carrier each person is using. It’s not uncommon in places like Africa to carry multiple cellphones in order to have the necessary access to the right money transfer system. Libra could solve this problem by creating a universal currency that can be transferred across multiple cellphone networks and across borders. There’s also the issue of cost, which is cited by the World Bank as being the biggest issue with financial systems outside of developed markets. Facebook says Libra would have a near-zero cost attached to it. The Colombian border city of Cucuta, is one of the places where Libra could make a difference. Every day, thousands of needy Venezuelans cross into this sweltering town to buy food and medicines that are scarce at home. For many the first stop is Western Union, where they line up for hours to pick up cash sent by relatives living in abroad. The demand for cash remittances is so big in fact that migrants sometimes line up outside Western Unions the night before the branches open, sleeping on the sidewalk to keep their place in the queue. Digital currencies could make it easier to transfer funds to these migrants with no bank accounts, and save them hours of their time. Using them is also safer, says Typson Sanchez, a local software developer, because it prevents robberies. But despites its obvious benefits, merchants in Cucuta have been slow to adopt digital currencies, and only a handful currently accept it. “Merchants worry about thevolatility” of currencies like bitcoin, says Sanchez, a software developer and co-founder of Panda Exchange, a digital payments start up. Other merchants find existing digital wallets difficult to use, and worry about its legality. Sanchez hopes that Facebook’s Libra could help to overcome some of those obstacles. “They already have a very powerful platform with lots of users” Sanchez says. “They will be able to reach everyday people who are not into technology. And that’s something that many companies haven’t been able to do yet.” Vodaphone, the Europe-based cell carrier, has a large presence in Africa and other developing countries and operates its own mobile wallet system known asM-Pesa. Already a dominant carrier in Africa, Vodaphone sees the potential in Libra to enable customers to send money across borders at a much lower cost. There’s a lot of room for improvement. The average fee on a cross-border remittance is around 7%, according to the World Bank, with places in Sub-Saharan Africa charging as much as 10% to send a money transfer. Companies like Vodaphone and organizations involved with Libra like Mercy Corp and Women’s World Banking said they’ve joined at least in part to make sure they have a “seat at the table” in case Libra does take off as a payment method. Libra’s real-life use cases are still at least a year off, and much likely longer. Some would argue that Facebook’s Libra is the wrong solution to the issue of accessing financial services in developing countries. In China, the dominant way to pay are WeChat and AliPay, two mobile apps that use messaging to send money either to a business or another person, at extremely low cost. Both apps are used by more than a billion people. “That to me is the simplest solution for developing countries,” said Nicholas Economides, a professor of economics at the Stern School of Business, an expert in electronic commerce and payment systems. “You don’t need to create a whole new currency. You just need the right app.” There’s a “well, why not?” factor into these companies’ involvement. Facebook asked for a minimum $10 million investment in Libra from its for-profit partners. For a company like Visa, which made more than $20 billion in revenue last year, the Libra investment is pocket change. In exchange Visa gets insider access to Libra and its potential technologies, as well as a seat at the table. Visa declined a request for an interview regarding its involvement in the project, but a spokesman pointed to a blog post one of its executives published Tuesday, in which the company’s interest isdescribedas reflecting “a spirit of openness and curiosity.” Mastercard has been looking into technology that underpins bitcoin and other digital technologies for some time, said Jorn Lambert, executive vice president of digital solutions at Mastercard. The company was attracted to Libra because it’s private, unlike bitcoin which operates on an open network, and it’s backed by reserve currencies. “This is a thing that could provide real consumer benefits, particularly in the developing world,” Lambert said. Women’s World Banking, a nonprofit focused on financial inclusion for women particularly in developing countries, also joined the association. WWB wanted to make sure the issues of women in developing countries—who are often less technologically literate than their male counterparts—were addressed. “Women are more than half of the unbanked population in the world. We wanted to be at the table to address women’s needs,” said Karen Miller, vice president of knowledge and communications. —The fall and rise of VR: The struggle tomake virtual reality get real —“It’s just lazy”: Current’s CEO on FacebookCalibra’s similar logo —Slack went publicwithout an IPO. Here’s how a direct offering works —Welcome to the next generation ofcorporate phishing scams —Listen to our new audio briefing,Fortune500 Daily Catch up withData Sheet,Fortune‘s daily digest on the business of tech.
Meghan McCain says Pete Buttigieg's absence from post-debate spin room was 'unusual' It was a “day of hot topics” on Friday’s episode of “ The View ,” and the panelists went all-in on politics. The hosts welcomed presidential candidate, Pete Buttigieg , who participated in Thursday night’s democratic debate. Appearing via satellite, Buttigieg was asked a number of questions about the previous night’s event, but it was a question from co-host Meghan McCain that set Twitter alight with comments. “You made an unusual choice last night, and you decided not to go to the Spin Room and gaggle with journalists. I just thought that was interesting,” said McCain. “You and Joe Biden were the only two. Why did you choose not to talk to reporters after the debate?” she asked. “I didn’t think there was anything I needed to go out and clean up or change or expand on. I wanted my words to speak for themselves,” Buttigieg responded. McCain noted, “It’s just an unusual choice for most candidates.” Buttigieg fired back, “Is it?” Earlier in the broadcast before Buttigieg’s appearance, McCain also criticized his performance during the debate. “I thought Pete Buttigieg looked real young last night and real green,” she said. Many viewers on Twitter felt McCain’s criticism of a guest appearing on her show wasn’t a great move. Others questioned her assessment and tone of her questioning his absence from the post-debate Spin Room: @MeghanMcCain is now not only rude to her co hosts but guests. So disrespectful to @PeteButtigieg this morning. There’s a way to speak with people you disagree with and being disrespectful is NOT ONE OF THEM. #THEVIEW — Destin (@ddddestin) June 28, 2019 Don't go picking a fight with Mayor Pete. Meghan,he is very popular and people really like him. He choice not to go to the spin room made perfect sense to all of us. Biden didn't go either. Did u scold him too? — Dixie Lee (@Dlee56275979) June 28, 2019 Pete’s like, “yeah, so? What’s your point?” Love the guy. — Fidelio (@Fidelio012) June 28, 2019 Others felt McCain’s question was earned, and that Buttigieg should have made an appearance alongside the other candidates. One even speculated Buttigieg didn’t show up in order to avoid awkward questions about his track record as mayor of South Bend, Indiana: Story continues 👋Pete, would’ve liked to seen you in the spin room. Every opportunity you have to build on your positive message is a plus+ Reminder: The media will be replaying all those spin room chats over & over. More ppl will to hear from you. — Lynn Larrew (@LynnLarrew) June 28, 2019 Oh, it looked like you ran from the spin room to avoid questions on your record in S Bend. — #MedicareForAll (@OurRevolutionVC) June 28, 2019 Olivia Munn criticizes white men who complain about having to watch what they say: Read more from Yahoo Entertainment: Bethenny Frankel denies yelling at Sunny Hostin's child: 'I think she's been drinking or taking some drugs' Veteran meteorologist 'let go' from job after objecting to station's 'Code Red' weather alerts Wendy Williams says R. Kelly's ex ignored abuse: 'It's not like you didn't know anything' Want daily pop culture news delivered to your inbox? Sign up here for Yahoo Entertainment & Lifestyle's newsletter. View comments
Miranda Lambert Posts Rare Romantic Snap With Husband Brendan McLoughlin Miranda Lambert shared a rare snap with her husband, Brendan McLoughlin, on Thursday. The 35-year-old country singer posted a sweet pic of the two posing against a sun-kissed New York City skyline on Instagram. Dressed for summer in the Big Apple, Lambert rocked a red and white outfit and bright nails, while McLoughlin also wore a white top. “💙NYPDA,” Lambert captioned the photo, proudly saluting her man’s work as a New York Police Department officer. View this post on Instagram 💙NYPDA A post shared by Miranda Lambert (@mirandalambert) on Jun 27, 2019 at 9:34pm PDT The post was a hit with fellow police wives, who responded with comments like, “Blue wife for 26 years 💙🖤💙,” and, “Welcome to the 💙 family 😍👮🏻‍♂️. A family like no other. ❤️.” Another follower wrote, “Girl after my heart, love my NYPD Hubby too!!💙💙💙,” to which Lambert responded, “They are the best!💙.” When one Instagram user asked Lambert if she would join her police wives group, the singer responded with a blue heart emoji. Lambert (who was previously married to Blake Shelton ) and McLoughlin tied the knot in February. She is now preparing to release new music, filling ET in on her plans earlier in June. “I'm finishing the record right now and it's just high energy -- it's fun lyrics, it's clever, it's a lot of girl anthems," she shared about the album, which will be her seventh solo record. “I'm really excited about it.” See more on Lambert below. RELATED CONTENT: Miranda Lambert Explains Why She Needed to Take a Break Before Releasing New Music (Exclusive) Miranda Lambert Shares Rare Photo of Husband Brendan Mcloughlin With Rescue Pups Miranda Lambert Is Glowing With Husband Brendan McLoughlin in NYC Related Articles: Hollywood Bikini Bods Over 40 Biggest Celebrity Breakups of 2019 -- So Far! Celebrities in Their Underwear
Nipsey Hussle's Last Words Were to His Killer as the Rapper Was Kicked as He Lay Bleeding: D.A. Moments before Nipsey Hussle was gunned down in front of his Marathon Clothing store, the famed rapper had a final exchange with his alleged shooter. Shortly after having a brief conversation with Eric Holder on March 31, Hussle was shot several times and kicked in the head by Holder, according to grand jury transcripts unsealed on Thursday and obtained by the Los Angeles Times . As he lay dying after being shot at least 10 times, Deputy District Attorney John McKinney told the court, the “Double Up” rapper, 33, turned to Holder, 29, and allegedly told him, “You got me.” Hussle’s heartbreaking final words were just one of the many details that were unveiled this week from the May grand jury proceedings. Eric Holder (Left), Nipsey Hussle (right) \| LAPD; Prince Williams/WireImage RELATED: Everything to Know About Nipsey Hussle: From $100 Mixtapes to Lasting Love with Lauren London During McKinney’s opening statement, he alleged that Holder and his girlfriend pulled into a busy parking lot at the time to get food from a burger restaurant, according to the Los Angeles Times. That’s when Holder allegedly spotted Hussle, McKinney said. “Apparently, the conversation had something to do with [Hussle] telling Mr. Holder that word on the street was that Mr. Holder was snitching,” McKinney said in his statement. “The conversation wasn’t particularly intense. It wasn’t particularly belligerent.” McKinney went on to explain that Holder was heard asking Hussle, “So you’ve never snitched?” or “Haven’t you snitched?” Holder then got back into his car, and he and the woman drove off. As she was driving, Holder allegedly pulled out a gun and told the woman to drive around the block so that he could load the weapon, the D.A. told the grand jury. He then allegedly told her to pull over and said he’d be right back. It was at that moment that McKinney said Holder allegedly approached Hussle outside of his store and shot him multiple times, before kicking the rapper in the head and fleeing. Story continues When he got back into the car with the woman, he told her to quickly drive away, McKinney alleged. When she questioned him about what happened, she said he threatened to slap her if she didn’t just drive, the D.A. told the grand jury. Nipsey Hussle \| Shareif Ziyadat/Getty Images RELATED: Accused Nipsey Hussle Murder Getaway Car Driver Offered Police Protection Amid Death Threats The woman, a key prosecution witness, has not been identified by name but is currently in fear for her life due to a plethora of threats she’s received, according to court documents. Identified only as Witness 1 in court documents, the woman told an LAPD detective that she has been receiving death threats in retaliation for the murder. Authorities deemed these threats legitimate after a brief investigation. Investigators say her license plate number has been distributed on social media following the murder of the California-based rapper, and that descriptions of her physical appearance and car are circulating online as well. Detectives within the LAPD deemed the woman’s protection “very important,” and according to grand jury testimony obtained by TMZ , local police may possibly relocate her into hiding. It is still unclear whether the woman has accepted the authorities’ offer of protective custody. She has, however, been granted immunity for her testimony, the Los Angeles Times reported. In May, Holder was indicted for Hussle’s murder by a grand jury. He pled not guilty to the crime. Eric Holder RELATED: Nipsey Hussle’s Daughter Emani, 10, Honors Him During Graduation 2 Months After Rapper’s Death In the wake of his death, Hussle (né Ermias Asghedom) has been honored by many , including his most recent celebration of life at the 2019 BET Awards on Sunday . The network’s annual awards presented a moving tribute that included a performance by Marsha Ambrosius, YG, John Legend and DJ Khaled, before T.I. presented Hussle with the humanitarian award posthumously for his work in revitalizing his South Los Angeles neighborhood. Lauren London , Hussle’s longtime girlfriend, accepted the trophy alongside the rapper’s family, including his 2-year-old son Kross and 10-year-old daughter Emani Asghedom . “I just want to thank you guys for all of the love and support,” she said. “The marathon continues again.” Nipsey Hussle and Lauren London \| Gregg DeGuire/Getty Images RELATED: Nipsey Hussle’s Final Ever Music Video Featuring DJ Khaled and John Legend Is Released Hussle’s grandmother Margaret Boutte expressed gratitude for the support her family has received in the wake of Hussle’s passing. “God said to Nipsey, ‘You’ve done your job, you’ve made your mark,’” Boutte reflected. “So thank you so much, world, for loving him, too.” Among the speakers were also Hussle’s parents, mom Angelique Boutte Smith and father Dawit Asghedom, who admitted how much he misses his son. “He wanted to be here so badly,” Hussle’s father said. “Last year he made it to perform here and we were so happy for him. You recognize him and we appreciate that. The marathon continues.”
World Bank chief urges reforms to attract investment amid trade uncertainty By David Lawder June 28 (Reuters) - Uncertainty from trade tensions and slowing global growth is increasing the need for developing countries to pursue reforms that make them more attractive to private investment, World Bank President David Malpass said on Friday. Malpass, who is attending the G20 leaders summit in Osaka Japan, told Reuters in an interview that he will urge countries to take bolder steps to improve their business climates to allow private firms to compete better with state-owned companies and generate more profitable growth, innovation and jobs. The World Bank in its annual Global Economic Prospects report earlier this month forecast that slowing trade and investment flows would cut global growth this year to 2.6 percent, down 0.3 percentage point from previous forecasts. The International Monetary Fund has forecast a similar slowdown, driven primarily by increased tariffs, primarily between the United States and China. "My message to people at the G20 is the idea that development is critical in this environment and urgent. It's important that policy changes be considered that will create more potential for private-sector growth," Malpass said in a telephone interview from Osaka. Malpass, who took over as World Bank president in April after two years in the Trump administration as the U.S. Treasury's top diplomat, said he is also focused on countries' internal development and ways to grow internal commerce between cities and regions. The bank's private-sector arm, the International Finance Corp, is doing a deep diagnostics dive into obstacles to private-sector firms in various countries on issues like customs facilitation, stronger bankruptcy regimes and legal changes to bring more women into workforces. Malpass declined to comment when asked whether he was urging his former colleagues in the Trump administration to reach a trade deal with China to avoid new tariffs as U.S. President Donald Trump and Chinese President Xi Jinping prepared to meet in Osaka. Malpass in the past year had been at the negotiating table in several rounds of the U.S.-China talks. "We're keeping an eye on it," Malpass said of the U.S.-China trade dispute. "It's critical that countries retain investor confidence given the uncertainties." Malpass, who has criticized China's Belt and Road infrastructure drive in the past over a lack of transparency in its lending practices, said that the wind-down of the World Bank's lending to China and other middle-income countries was continuing in line with agreements reached last year as part of a $13 billion capital increase. During a meeting in Beijing earlier this month, Malpass said he discussed with Chinese officials the shifting of World Bank lending to tackle environmental problems such as air pollution and eliminating plastics waste from rivers and oceans. "We're evolving the relationship in a way that as lending comes down, more of it goes toward environment and poverty alleviation kinds of activities," Malpass said. Malpass said he also would be meeting with the leaders of several developing countries, including Brazil, India, Indonesia, Russia, Saudi Arabia, Senegal, South Africa and Turkey during the G20 summit. (Reporting by David Lawder; editing by Jonathan Oatis)
U.S. prosecutors subpoena records on Boeing 787 production - Seattle Times (Reuters) - Federal prosecutors have subpoenaed records from Boeing Co relating to the production of the 787 Dreamliner in South Carolina, the Seattle Times reported on Friday, citing two sources familiar with the investigation. It said the subpoena was issued by the U.S. Department of Justice, which is also conducting a criminal investigation into the certification and design of Boeing's 737 MAX after two deadly crashes within five months. However, the newspaper said it was not clear if the subpoena was issued by the same prosecutors overseeing the 737 MAX investigation. (Reporting by Tracy Rucinski; Editing by David Gregorio)
2019 FIFA Women's World Cup: Megan Rapinoe steals show after Trump feud PARIS — Megan Rapinoe took the pitch Friday to win for the United States, not to make a statement to its President or his supporters that had been barraging her social media accounts. This was about the team, she said. This was about her teammates. This was about the World Cup. It wasn’t personal. Yet human nature is human nature and the significance of Rapinoe knocking in both goals in the Americans’ dramatic 2-1 victory over France here Friday night, pushing them into a Tuesday semifinal against England, wasn’t lost on her. If you’re going to get into a fight with Donald Trump , well, that’s one heck of a way to close out the week. “There is always satisfaction,” Rapinoe conceded after. “I don’t really get energized by haters and all of that. I figure there are more people who love me and I’m like, ‘Hey this is great.’ I am more energized by that and there was obviously tons of support, internally with the group and friends and family.” Sure, but ... “Yeah,” she said. “You want to come out and have a good performance.” Rapinoe wasn’t going to gloat because that isn’t her. The entire scrap with Trump was unexpected but not unwelcome. She’s built for it. Months-old video of her saying she wouldn’t go to the “[expletive] White House” if the U.S. won re-emerged this week and Trump jumped on it. Some of his followers doubled down. Megan Rapinoe celebrates after scoring her team's first goal during the 2019 FIFA Women's World Cup quarterfinal match between France and USA. (Getty) For Rapinoe, it wasn’t jarring or rattling or anything, though. She is fully comfortable and fully confident in her own skin — a 33-year-old openly gay activist who just happens to be one of the finest soccer players in the world. If someone doesn’t like what she has to say, she just tends to keep saying it. Might be Donald Trump. Might be a FIFA official. Might be an anonymous Twitter account screaming at her. “She stands up for what she believes in,” U.S. goalkeeper Alyssa Naeher said. “I have a lot of respect for her.” “Such a special person,” midfielder Rose Lavelle said. “People just gravitate to her. She is just a person that people want to listen to and learn from.” Story continues “It’s almost like it just feeds her,” coach Jill Ellis said. “This stuff doesn’t bounce off her, it pushes her forward.” It’s why over the last few days the Rapinoe-Trump dust-up wasn’t even really discussed around the team. Players reiterated their unconditional support for Rapinoe, and each other, but none of it seemed to matter. If there were now Americans who were so offended and sensitive that they were rooting France, of all teams, then so be it. The one thing they knew is that Rapinoe would be there, as good as ever, as consistent as ever, as focused as ever. She’s unflappable. “Megan’s a baller,” defender Kelley O’Hara said. “She lives for these moments, this is when she thrives. It’s pretty incredible.” And then she delivered. A brilliant Rapinoe throw-in sprung Alex Morgan into space and required a French defender to pull her down to prevent a breakaway. On the ensuing free kick, Rapinoe slipped the ball through traffic for goal No. 1. Then, in the second half, she collected a Tobin Heath pass in front of the net and hammered it in to give the U.S. a 2-0 lead that it would not relinquish despite a late French goal. Just like that, amid the heat of a Parisian summer night, amid the noise of a social media political fight, amid the pressure of the World Cup, Rapinoe stood tall again. “What a huge performance from the team,” she said, trying to shift the conversation to her teammates. “... It’s just phenomenal. It’s just an amazing moment for everyone.” Megan Rapinoe celebrates after scoring the U.S. team's second goal against France during their World Cup quarterfinal on Friday. (AP) Again she was asked about being motivated by everyone who was against her. Again she brushed it off. She was too happy to care about that. She’s having quite a month — she’s scored the Americans’ last four goals and is two games away from winning consecutive World Cups. Her ability as a player has often been overshadowed by star teammates, a style of play that focuses on setting others up and even her activism. There is no hiding her now. “I’m [not motivated by] the haters but I’m motivated by people like me and people who are fighting for the same thing,” she said. “And I take more energy from that than proving everyone wrong all the time. That’s sort of draining to me.” She was reminded it was Pride Month and Pride Day on Saturday in France. Yes, she noted, that was more like it. “Go gays,” she said with a laugh. “You can’t win a championship without gays on your team. It’s never been done before. Ever. That’s science right there … “Yeah, to be gay and fabulous during Pride Month at the World Cup is nice.” That’s the kind of stuff that will enrage some Americans, but why should Rapinoe care about them? She’s a kid from small-town Redding, California, way up near the Oregon border, who has willed herself into a global star and an activist voice that is now being heard. Her build is slight. Her impact is huge. “She’s unreal,” Lavelle said. “I just feel she’s on a whole other level and it’s fun to learn from her on and off the field.” She’s here to play but not to play nice. She won’t do anything that isn’t true to herself. She won’t sing along to the anthem. She won’t defer to the President. She won’t try to use a couple of goals to embolden herself, she’s already emboldened. She’s an American Original, a free-thinker, a fighter, a personality as colorful as her hair. Take it. Leave it. She doesn’t care. “We love a good bit of confidence in America, don’t we?” she smiled. More from Yahoo Sports: Rose responds to LaVar Ball's cringeworthy remark Former WWE star tells harrowing depression tale Brady takes subtle shot at ESPN star's 'cliff' comment Report: Thompson, Warriors expected to reach max deal
CORRECTED-UPDATE 4-Trump offers to meet North Korea's Kim at DMZ this weekend (Corrects to remove reference to Friday and The Hill interview in paragraph 16) * "We'll see each other for two minutes" if meeting happens-Trump * Kim said security guarantees are key, Putin tells Moon * A meeting could essentially reset table for a deal - analyst * It would be "pointless theatre" - another analyst" By Roberta Rampton OSAKA, June 29 (Reuters) - U.S. President Donald Trump said on Saturday he would like to meet North Korean leader Kim Jong Un this weekend at the demilitarized zone (DMZ) on the border of North and South Korea. Trump, who is in Osaka, Japan, for a Group of 20 summit, is due to arrive in South Korea later on Saturday. He is scheduled to leave on Sunday and return to Washington. "While there, if Chairman Kim of North Korea sees this, I would meet him at the Border/DMZ just to shake his hand and say Hello(?)!" Trump said on Twitter. Trump told reporters on Saturday, "We'll be there and I just put out a feeler because I don't know where he is right now. He may not be in North Korea." "If he's there, we'll see each other for two minutes, that's all we can, but that will be fine," he added. Trump said he and Kim "get along very well." U.S. special envoy Stephen Biegun said on Friday the United States was ready to hold constructive talks with North Korea to follow through on a denuclearization agreement reached by the two countries last year, South Korea's foreign ministry said. Biegun told his South Korean counterpart, Lee Do-hoon, that Washington wanted to make "simultaneous, parallel" progress on the agreement reached at a summit between Trump and Kim in Singapore last year, the ministry said in a statement. Both sides had agreed to establish new relations and work towards denuclearization of the Korean peninsula. But negotiations have stalled since a second summit in Vietnam in February collapsed as the two sides failed to narrow differences between U.S. calls for denuclearization and North Korean demands for sanctions relief. South Korea's presidential office said nothing was confirmed with regards to a Trump, Kim meeting. "Nothing is fixed at the moment, and our previous position of hoping for dialogue between North Korea and the United States remains unchanged," the office said. Russian President Vladimir Putin told South Korean President Moon Jae-in at a meeting on the sidelines of the G20 summit that Kim had told him in April security guarantees were key, and that corresponding measures were needed to realise denuclearisation, according to South Korea's presidential office on Saturday. North Korea's nominal head of state Choe Ryong Hae said in a speech praising Kim's achievements on Friday that his "strategic decision and proactive external activities" brought about "the great June 12 event", or the Singapore summit with Trump, and "re-establish(ed) the relations between the DPRK and big powers", North Korea's state media KCNA on Saturday. The Democratic People's Republic of Korea (DPRK) is North Korea's official name. "The DPRK government will ... work hard to develop the ties of friendship and cooperation with all the countries that respect the DPRK's sovereignty and are friendly to it," Choe said, according to KCNA. BIRTHDAY CARD Trump told reporters his offer to Kim for a meeting was a spur-of-the-moment idea. "I just thought of it this morning," he said. Trump wanted to visit the DMZ on a 2017 visit to South Korea but he was forced to put off the plan because of bad weather. Trump said before departing for the G20 Osaka Summit that he did not expect to meet Kim during his trip. U.S. Secretary of State Mike Pompeo said this week that a recent exchange of letters between Trump and Kim boosted hopes for a restart of talks, calling it a "very real possibility." Trump told reporters on Saturday Kim had sent him a birthday card and Trump sent him a letter in return. North Korea's official KCNA news agency said Trump's letter had "excellent content" and Kim would "seriously contemplate" it, without elaborating. Trump has previously said publicly he had received a very warm "beautiful letter" from Kim. He has not divulged its contents, but the White House official, who did not want to be identified, described the letter as "very flowery." "President Trump made his pitch for a short summit with Chairman Kim on Twitter as White House officials most likely have tried -- and failed -- to set up such a meeting through official diplomatic or South Korean channels," Harry J. Kazianis of the Center for the National Interest said. If the meeting happens, "while no major agreements will be signed, both sides can reaffirm their commitment to dialogue and diplomacy, essentially resetting the table for a future deal in the weeks and months to come," Kazianis added. But others were more sceptical. "The fundamental problem - no working-level meetings and no basic change in at least the US negotiating position - means that any meeting right now is just pointless theatre," Vipin Narang, associate professor of political science at MIT, on Twitter. (Reporting by Roberta Rampton; additional reporting by Joyce Lee and David Brunnstrom; writing by Eric Beech and Makini Brice; Editing by G Crosse and Sandra Maler)
EU, South American bloc strike long-sought free trade deal BUENOS AIRES, Argentina (AP) — South America's Mercosur bloc and the European Union struck a free-trade deal Friday after two decades of negotiations that concluded amid global trade tensions and rising protectionism. The agreement announced by both sides came as trade talks between the EU and the United States have stalled with the Trump administration threatening to impose tariffs on all autos, a major European export to the U.S. "In the midst of international trade tensions, we are sending today a strong signal with our Mercosur partners that we stand for rules-based trade," European Commission President Jean-Claude Juncker said following the clinching of the deal in the Belgian capital of Brussels. Juncker described the pact with the bloc made up of Argentina, Brazil, Paraguay and Uruguay as "an historic moment" that came 20 years after talks were launched. It shows the European bloc is determined to remain a flag-bearer of the global trade system at a time when it is being challenged by a Trump administration skeptical of free trade. Argentina's Foreign Ministry said the agreement "will mean the integration of a market of some 800 million people, nearly a fourth of the world's gross domestic product and more than $100 billion in bilateral trade of goods and services." The ministry said the deal also is aimed at strengthening political and cultural ties with the EU, improving access to goods, services and investments by reducing restrictions and easing access to technology and raw materials. Juncker said the deal would remove most tariffs on EU exports to Mercosur, saving more than 4 billion euros ($4.5 billion) worth of duties each year, four times as much as Europe's pact with Japan. The commission, which negotiates trade deals on behalf of the 28-nation EU, said the agreement is particularly important for industrial sectors like cars and car parts, machinery, chemicals, pharmaceuticals as well as clothing and footwear. Mercosur hopes to benefit with more exports of agricultural products including beef, poultry and sugar. Story continues The EU's farm and food sector also stands to gain, particularly products like chocolates, wine and spirits. "The basics of this deal have been quite clear for some time. It's cars and machinery and agriculture. But in the past, politics have stood in the way. Particularly in Brazil, which has had a very protectionist policy focusing on domestic production," said Jacob Funk Kirkegaard, senior fellow, at the Peterson Institute for international economics. "And at the same time, the Europeans have been very protective of their agricultural sector." The commission said the deal, which still must be ratified by the legislatures of all the countries involved, will also ease border checks and cut red tape. The agreement brings to 15 the number of pacts the EU has concluded since 2014, most recently with Canada and Japan, and comes as the bloc pushes ahead with international trade deals. Brazilian President Jair Bolsonaro called it one "of the most important trade agreements of all times." The Brazilian government said the deal would boost Latin America's largest economy by slashing tariffs for some agricultural products like orange juice, fruit and instant coffee, and expanding access via quotas for beef, ethanol and sugar. "Brazilian companies will benefit from the elimination of tariffs on exports of 100 percent of industrial products. That will equalize the conditions of competition with other partners that already have free trade agreements with the EU," it said. The deal is "a game changer in Latin America as a whole, which historically has been very protectionist," Kirkegaard said. "This could herald in a new era for Mercosur." Negotiations began on June 28, 1999, but have taken a long, torturous path marked by breaks and frustrations, as the countries' different sensitivities and priorities were taken into account. But EU Trade Commissioner Cecilia Malmstrom said the talks gathered momentum early this year, aided in part by a new Brazilian government that made the deal one of its priorities, and were pushed over the line by intensive negotiations over the last three days in Brussels. "This is a landmark agreement," Malmstrom told reporters in Brussels, flanked by negotiators and senior officials. "With this deal we are showing that we believe that trade is a good thing. It brings people and companies together, and we send a loud and clear message in support of open, sustainable, mutually beneficial, rule-based trade." ___ Cook reported from Brussels. Associated Press writers Almudena Calatrava in Buenos Aires, Argentina, Carson Gardiner and Yesica Fisch in Rio de Janeiro and Chris Rugaber in Washington contributed to this report.
Here’s What Hedge Funds Think About Seacor Holdings, Inc. (CKH) We can judge whether Seacor Holdings, Inc. (NYSE:CKH) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market when we factor in known risk factors. Seacor Holdings, Inc. (NYSE:CKH)was in 11 hedge funds' portfolios at the end of the first quarter of 2019. CKH shareholders have witnessed a decrease in activity from the world's largest hedge funds in recent months. There were 16 hedge funds in our database with CKH holdings at the end of the previous quarter. Our calculations also showed that ckh isn't among the30 most popular stocks among hedge funds. Today there are numerous metrics investors use to evaluate stocks. A couple of the most innovative metrics are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the best money managers can trounce the broader indices by a solid margin (see the details here). [caption id="attachment_745225" align="aligncenter" width="473"] Noam Gottesman, GLG Partners[/caption] We're going to take a peek at the key hedge fund action surrounding Seacor Holdings, Inc. (NYSE:CKH). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -31% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards CKH over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Royce & Associatesheld the most valuable stake in Seacor Holdings, Inc. (NYSE:CKH), which was worth $60.2 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $49.7 million worth of shares. Moreover, GLG Partners, D E Shaw, and Two Sigma Advisors were also bullish on Seacor Holdings, Inc. (NYSE:CKH), allocating a large percentage of their portfolios to this stock. Since Seacor Holdings, Inc. (NYSE:CKH) has faced declining sentiment from hedge fund managers, it's easy to see that there lies a certain "tier" of hedgies that slashed their positions entirely last quarter. It's worth mentioning that Noam Gottesman'sGLG Partnersdropped the biggest investment of the "upper crust" of funds monitored by Insider Monkey, comprising an estimated $0.9 million in stock, and John Thiessen's Vertex One Asset Management was right behind this move, as the fund sold off about $0.5 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 5 funds last quarter. Let's go over hedge fund activity in other stocks similar to Seacor Holdings, Inc. (NYSE:CKH). These stocks are Ruth's Hospitality Group, Inc. (NASDAQ:RUTH), Meta Financial Group Inc. (NASDAQ:CASH), Solaris Oilfield Infrastructure, Inc. (NYSE:SOI), and Cellectis SA (NASDAQ:CLLS). This group of stocks' market values are closest to CKH's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RUTH,15,64794,-2 CASH,12,82203,-1 SOI,16,102118,1 CLLS,8,32826,0 Average,12.75,70485,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $70 million. That figure was $123 million in CKH's case. Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) is the most popular stock in this table. On the other hand Cellectis SA (NASDAQ:CLLS) is the least popular one with only 8 bullish hedge fund positions. Seacor Holdings, Inc. (NYSE:CKH) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CKH, though not to the same extent, as the stock returned 5.4% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Eldorado Gold Corp (EGO) Looking for stocks with high upside potential? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 12.1% in 2019 (through May 30th). Conversely, hedge funds’ 20 preferred S&P 500 stocks generated a return of 18.7% during the same period, with the majority of these stock picks outperforming the broader market benchmark. Coincidence? It might happen to be so, but it is unlikely. Our research covering the last 18 years indicates that hedge funds' stock picks generate superior risk-adjusted returns. That's why we believe it is wise to check hedge fund activity before you invest your time or your savings on a stock like Eldorado Gold Corp (NYSE:EGO). Eldorado Gold Corp (NYSE:EGO)has experienced an increase in hedge fund sentiment in recent months.EGOwas in 11 hedge funds' portfolios at the end of the first quarter of 2019. There were 8 hedge funds in our database with EGO holdings at the end of the previous quarter. Our calculations also showed that ego isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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 fresh hedge fund action encompassing Eldorado Gold Corp (NYSE:EGO). 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 38% from the previous quarter. On the other hand, there were a total of 9 hedge funds with a bullish position in EGO a year ago. With hedge funds' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions). According to Insider Monkey's hedge fund database,Renaissance Technologies, managed by Jim Simons, holds the number one position in Eldorado Gold Corp (NYSE:EGO). Renaissance Technologies has a $9.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second isD E Shaw, managed by D. E. Shaw, which holds a $5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers with similar optimism comprise Peter Franklin Palmedo'sSun Valley Gold, Paul Marshall and Ian Wace'sMarshall Wace LLPand Israel Englander'sMillennium Management. Consequently, specific money managers have jumped into Eldorado Gold Corp (NYSE:EGO) headfirst.Sun Valley Gold, managed by Peter Franklin Palmedo, initiated the biggest position in Eldorado Gold Corp (NYSE:EGO). Sun Valley Gold had $3.9 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso made a $1.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander'sMillennium Management, Peter Muller'sPDT Partners, and Cliff Asness'sAQR Capital Management. Let's go over hedge fund activity in other stocks similar to Eldorado Gold Corp (NYSE:EGO). We will take a look at Comstock Resources Inc (NYSE:CRK), German American Bancorp., Inc. (NASDAQ:GABC), M/I Homes Inc (NYSE:MHO), and United Financial Bancorp, Inc. (NASDAQ:UBNK). All of these stocks' market caps are closest to EGO's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CRK,8,7375,0 GABC,6,14020,2 MHO,15,48134,3 UBNK,8,72006,1 Average,9.25,35384,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.25 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $24 million in EGO's case. M/I Homes Inc (NYSE:MHO) is the most popular stock in this table. On the other hand German American Bancorp., Inc. (NASDAQ:GABC) is the least popular one with only 6 bullish hedge fund positions. Eldorado Gold Corp (NYSE:EGO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately EGO wasn't nearly as popular as these 20 stocks and hedge funds that were betting on EGO were disappointed as the stock returned -2.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Navigator Holdings Ltd (NVGS) While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Navigator Holdings Ltd (NYSE:NVGS). IsNavigator Holdings Ltd (NYSE:NVGS)a bargain? Hedge funds are buying. The number of bullish hedge fund positions moved up by 1 in recent months. Our calculations also showed that NVGS isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to review the recent hedge fund action regarding Navigator Holdings Ltd (NYSE:NVGS). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in NVGS over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions). The largest stake in Navigator Holdings Ltd (NYSE:NVGS) was held byInvesco Private Capital (WL Ross), which reported holding $240.5 million worth of stock at the end of March. It was followed by Horizon Asset Management with a $16.1 million position. Other investors bullish on the company included Royce & Associates, Minerva Advisors, and Arrowstreet Capital. As one would reasonably expect, key hedge funds have been driving this bullishness.Minerva Advisors, managed by David P. Cohen, assembled the largest position in Navigator Holdings Ltd (NYSE:NVGS). Minerva Advisors had $4.3 million invested in the company at the end of the quarter. Charles Frumberg'sEmancipation Capitalalso made a $0.8 million investment in the stock during the quarter. The only other fund with a brand new NVGS position is Matthew Hulsizer'sPEAK6 Capital Management. Let's go over hedge fund activity in other stocks similar to Navigator Holdings Ltd (NYSE:NVGS). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), Peoples Bancorp Inc. (NASDAQ:PEBO), LeMaitre Vascular Inc (NASDAQ:LMAT), and Exterran Corporation (NYSE:EXTN). This group of stocks' market caps match NVGS's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position QUAD,22,39329,2 PEBO,9,29859,1 LMAT,11,17414,5 EXTN,18,70361,3 Average,15,39241,2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $39 million. That figure was $280 million in NVGS's case. Quad/Graphics, Inc. (NYSE:QUAD) is the most popular stock in this table. On the other hand Peoples Bancorp Inc. (NASDAQ:PEBO) is the least popular one with only 9 bullish hedge fund positions. Navigator Holdings Ltd (NYSE:NVGS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately NVGS wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); NVGS investors were disappointed as the stock returned -11.7% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Tristate Capital Holdings Inc (TSC) Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can't match. So should one consider investing in Tristate Capital Holdings Inc (NASDAQ:TSC)? The smart money sentiment can provide an answer to this question. IsTristate Capital Holdings Inc (NASDAQ:TSC)worth your attention right now? Money managers are in a pessimistic mood. The number of bullish hedge fund positions were trimmed by 1 in recent months. Our calculations also showed that TSC isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's take a peek at the latest hedge fund action encompassing Tristate Capital Holdings Inc (NASDAQ:TSC). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -7% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TSC over the last 15 quarters. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions). According to Insider Monkey's hedge fund database, Chuck Royce'sRoyce & Associateshas the largest position in Tristate Capital Holdings Inc (NASDAQ:TSC), worth close to $16.6 million, corresponding to 0.1% of its total 13F portfolio. The second most bullish fund manager is Tom Brown ofSecond Curve Capital, with a $16 million position; the fund has 12.2% of its 13F portfolio invested in the stock. Other peers that hold long positions comprise Jim Simons'sRenaissance Technologies, Paul Marshall and Ian Wace'sMarshall Wace LLPand Richard Driehaus'sDriehaus Capital. Seeing as Tristate Capital Holdings Inc (NASDAQ:TSC) has witnessed bearish sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that slashed their positions entirely last quarter. At the top of the heap, David Harding'sWinton Capital Managementcut the biggest stake of the 700 funds monitored by Insider Monkey, totaling about $0.3 million in stock, and Andrew Feldstein and Stephen Siderow's Blue Mountain Capital was right behind this move, as the fund cut about $0.1 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 1 funds last quarter. Let's check out hedge fund activity in other stocks similar to Tristate Capital Holdings Inc (NASDAQ:TSC). These stocks are ProQR Therapeutics NV (NASDAQ:PRQR), Vivint Solar Inc (NYSE:VSLR), Unisys Corporation (NYSE:UIS), and CEVA, Inc. (NASDAQ:CEVA). This group of stocks' market caps resemble TSC's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PRQR,10,106417,-1 VSLR,11,23343,-5 UIS,19,77897,2 CEVA,10,30237,0 Average,12.5,59474,-1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $54 million in TSC's case. Unisys Corporation (NYSE:UIS) is the most popular stock in this table. On the other hand ProQR Therapeutics NV (NASDAQ:PRQR) is the least popular one with only 10 bullish hedge fund positions. Tristate Capital Holdings Inc (NASDAQ:TSC) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on TSC, though not to the same extent, as the stock returned 4% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Ituran Location and Control Ltd. (ITRN) The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted in May as this time China pivoted and Trump put more pressure on China by increasing tariffs. Hedge funds' top 20 stock picks performed spectacularly in this volatile environment. These stocks delivered a total gain of 18.7% through May 30th, vs. a gain of 12.1% for the S&P 500 ETF. In this article we will look at how this market volatility affected the sentiment of hedge funds towards Ituran Location and Control Ltd. (NASDAQ:ITRN), and what that likely means for the prospects of the company and its stock. IsIturan Location and Control Ltd. (NASDAQ:ITRN)a marvelous investment now? Hedge funds are getting more bullish. The number of bullish hedge fund positions increased by 2 lately. Our calculations also showed that itrn isn't among the30 most popular stocks among hedge funds.ITRNwas in 11 hedge funds' portfolios at the end of the first quarter of 2019. There were 9 hedge funds in our database with ITRN positions at the end of the previous quarter. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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. We're going to analyze the new hedge fund action regarding Ituran Location and Control Ltd. (NASDAQ:ITRN). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 22% from one quarter earlier. By comparison, 10 hedge funds held shares or bullish call options in ITRN a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions). More specifically,Renaissance Technologieswas the largest shareholder of Ituran Location and Control Ltd. (NASDAQ:ITRN), with a stake worth $47.3 million reported as of the end of March. Trailing Renaissance Technologies was Gobi Capital, which amassed a stake valued at $44 million. Simcoe Capital Management, Arrowstreet Capital, and Cove Street Capital were also very fond of the stock, giving the stock large weights in their portfolios. As industrywide interest jumped, some big names have jumped into Ituran Location and Control Ltd. (NASDAQ:ITRN) headfirst.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most outsized position in Ituran Location and Control Ltd. (NASDAQ:ITRN). Arrowstreet Capital had $3 million invested in the company at the end of the quarter. Chuck Royce'sRoyce & Associatesalso made a $1.7 million investment in the stock during the quarter. The following funds were also among the new ITRN investors: Israel Englander'sMillennium Management, D. E. Shaw'sD E Shaw, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital. Let's check out hedge fund activity in other stocks similar to Ituran Location and Control Ltd. (NASDAQ:ITRN). We will take a look at Noble Corporation plc (NYSE:NE), ViewRay, Inc. (NASDAQ:VRAY), Opus Bank (NASDAQ:OPB), and HomeStreet Inc (NASDAQ:HMST). All of these stocks' market caps match ITRN's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NE,23,102367,-1 VRAY,23,264047,2 OPB,11,135088,1 HMST,10,15920,3 Average,16.75,129356,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $126 million in ITRN's case. Noble Corporation plc (NYSE:NE) is the most popular stock in this table. On the other hand HomeStreet Inc (NASDAQ:HMST) is the least popular one with only 10 bullish hedge fund positions. Ituran Location and Control Ltd. (NASDAQ:ITRN) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately ITRN wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); ITRN investors were disappointed as the stock returned -6.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About J. Jill, Inc. (JILL) Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 stocks among hedge funds beat the S&P 500 Index by more than 6 percentage points so far in 2019. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of J. Jill, Inc. (NYSE:JILL). J. Jill, Inc. (NYSE:JILL)has seen an increase in support from the world's most elite money managers in recent months.JILLwas in 11 hedge funds' portfolios at the end of March. There were 10 hedge funds in our database with JILL holdings at the end of the previous quarter. Our calculations also showed that JILL isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's review the latest hedge fund action regarding J. Jill, Inc. (NYSE:JILL). Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. By comparison, 9 hedge funds held shares or bullish call options in JILL a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Citadel Investment Groupwas the largest shareholder of J. Jill, Inc. (NYSE:JILL), with a stake worth $5.1 million reported as of the end of March. Trailing Citadel Investment Group was Buckingham Capital Management, which amassed a stake valued at $4.3 million. Arrowstreet Capital, Renaissance Technologies, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios. Consequently, key money managers have been driving this bullishness.North Fourth Asset Management, managed by Anthony Joseph Vaccarino, established the most valuable position in J. Jill, Inc. (NYSE:JILL). North Fourth Asset Management had $1 million invested in the company at the end of the quarter. John Tompkins'sTyvor Capitalalso made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin'sCitadel Investment Groupand Israel Englander'sMillennium Management. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as J. Jill, Inc. (NYSE:JILL) but similarly valued. We will take a look at resTORbio, Inc. (NASDAQ:TORC), Clipper Realty Inc. (NYSE:CLPR), Value Line, Inc. (NASDAQ:VALU), and Maxar Technologies Inc. (NYSE:MAXR). This group of stocks' market valuations resemble JILL's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TORC,6,43371,3 CLPR,6,49012,0 VALU,2,3653,0 MAXR,7,14915,-1 Average,5.25,27738,0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $19 million in JILL's case. Maxar Technologies Inc. (NYSE:MAXR) is the most popular stock in this table. On the other hand Value Line, Inc. (NASDAQ:VALU) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks J. Jill, Inc. (NYSE:JILL) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately JILL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on JILL were disappointed as the stock returned -71.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Nova Measuring Instruments Ltd. (NVMI) Does Nova Measuring Instruments Ltd. (NASDAQ:NVMI) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on satellite photos and other research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail inconceivably on some occasions, but net net their stock picks have been generating superior risk-adjusted returns on average over the years. Nova Measuring Instruments Ltd. (NASDAQ:NVMI)has seen an increase in support from the world's most elite money managers in recent months. Our calculations also showed that NVMI isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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 view the recent hedge fund action encompassing Nova Measuring Instruments Ltd. (NASDAQ:NVMI). 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 22% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards NVMI over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions). The largest stake in Nova Measuring Instruments Ltd. (NASDAQ:NVMI) was held byRenaissance Technologies, which reported holding $50.5 million worth of stock at the end of March. It was followed by Adage Capital Management with a $35.2 million position. Other investors bullish on the company included Royce & Associates, Arrowstreet Capital, and D E Shaw. Consequently, key hedge funds were breaking ground themselves.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most outsized position in Nova Measuring Instruments Ltd. (NASDAQ:NVMI). Arrowstreet Capital had $2.3 million invested in the company at the end of the quarter. D. E. Shaw'sD E Shawalso initiated a $1.3 million position during the quarter. The other funds with new positions in the stock are Paul Hondros'sAlphaOne Capital Partners, Matthew Hulsizer'sPEAK6 Capital Management, and Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capital. Let's check out hedge fund activity in other stocks similar to Nova Measuring Instruments Ltd. (NASDAQ:NVMI). These stocks are Hanger, Inc. (NYSE:HNGR), Precision Drilling Corp (NYSE:PDS), Modine Manufacturing Company (NYSE:MOD), and Banc of California, Inc. (NYSE:BANC). This group of stocks' market values resemble NVMI's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HNGR,22,155181,4 PDS,16,36738,2 MOD,17,69889,0 BANC,15,92220,-2 Average,17.5,88507,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was $105 million in NVMI's case. Hanger, Inc. (NYSE:HNGR) is the most popular stock in this table. On the other hand Banc of California, Inc. (NYSE:BANC) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Nova Measuring Instruments Ltd. (NASDAQ:NVMI) is even less popular than BANC. Hedge funds dodged a bullet by taking a bearish stance towards NVMI. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately NVMI wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); NVMI investors were disappointed as the stock returned 3.3% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Heska Corp (HSKA) We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Heska Corp (NASDAQ:HSKA) based on that data. Heska Corp (NASDAQ:HSKA)shareholders have witnessed a decrease in enthusiasm from smart money in recent months. Our calculations also showed that HSKA isn't among the30 most popular stocks among hedge funds. To most market participants, hedge funds are viewed as underperforming, outdated financial vehicles of years past. While there are greater than 8000 funds with their doors open at the moment, Our experts choose to focus on the elite of this group, approximately 750 funds. These hedge fund managers administer the lion's share of the hedge fund industry's total asset base, and by keeping an eye on their best picks, Insider Monkey has uncovered various investment strategies that have historically outpaced the market. Insider Monkey's flagship hedge fund strategy outrun the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to take a look at the latest hedge fund action regarding Heska Corp (NASDAQ:HSKA). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -8% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in HSKA over the last 15 quarters. With the smart money's sentiment swirling, there exists a select group of key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions). More specifically,Redmile Groupwas the largest shareholder of Heska Corp (NASDAQ:HSKA), with a stake worth $19.2 million reported as of the end of March. Trailing Redmile Group was Millennium Management, which amassed a stake valued at $11 million. GAMCO Investors, Citadel Investment Group, and AlphaOne Capital Partners were also very fond of the stock, giving the stock large weights in their portfolios. Since Heska Corp (NASDAQ:HSKA) has faced bearish sentiment from the smart money, we can see that there were a few hedgies who were dropping their full holdings heading into Q3. Interestingly, Peter S. Park'sPark West Asset Managementcut the largest investment of the 700 funds tracked by Insider Monkey, comprising close to $9.1 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund sold off about $2.4 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 1 funds heading into Q3. Let's check out hedge fund activity in other stocks similar to Heska Corp (NASDAQ:HSKA). We will take a look at Hanmi Financial Corp (NASDAQ:HAFC), Construction Partners, Inc. (NASDAQ:ROAD), Osiris Corporation (OTC:OSIR), and Apollo Medical Holdings, Inc. (NASDAQ:AMEH). This group of stocks' market valuations match HSKA's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HAFC,12,37575,2 ROAD,8,13006,0 OSIR,13,55531,5 AMEH,3,851,0 Average,9,26741,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $38 million in HSKA's case. Osiris Corporation (OTC:OSIR) is the most popular stock in this table. On the other hand Apollo Medical Holdings, Inc. (NASDAQ:AMEH) is the least popular one with only 3 bullish hedge fund positions. Heska Corp (NASDAQ:HSKA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately HSKA wasn't nearly as popular as these 20 stocks and hedge funds that were betting on HSKA were disappointed as the stock returned -2.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
3 Stocks That Could Benefit from a Positive G20 Meeting A lot of eyes are set upon President Trump and Chinese leader Xi Jinping’s meeting this upcoming weekend. There is a bag of mixed emotions going into the summit because the results of the discussion will likely play a pivotal role on the stock market and economy as a whole. Investors have been looking at the G20 as the biggest risk to market equilibrium after the Fed left the door open for the possibility for rate cuts which sent stocks soaring. According to reports, Chinese President Xi Jinping was prepared to present terms of an agreement to Trump so long as the newly reached deal was balanced. Goldman Sachs GS recently released a list of stocks who have revenue streams dependent on Chinese exposure. With that in mind, let’s take a further look into which stocks have high Chinese exposure, and which stocks could surge if the U.S. and China are able to arrive at a compromise or at least a temporary ceasefire. Applied Materials Applied Materials AMAT focuses in modifying materials at atomic levels and on an industrial scale. 45% of its revenue stems from China, which can push or pull the stock depending on how the G20 goes. Applied Materials is currently sitting at a Zacks Rank #2 (Buy), with a style score of A in Value. The stock has historically traded at a discount from its respective industry. Over the past two years, Applied Materials has traded at 17X its forward 12-month earnings at its highest, and traded 7X its forward 12-month earnings at its lowest. We can see on the graph below that the stock has been able stay below its industry in terms of valuation making it a good stock to consider especially if all goes well this weekend. Las Vegas Sands Las Vegas Sands Corp. LVS is a hotel, gaming, and retail mall company headquartered in Las Vegas, Nevada. The gaming stock has a whopping 62% revenue exposure to China. The company is currently listed as a Zacks Rank #3 (Hold) and has some sound growth projections. The Zacks Consensus Estimate is currently calling for an earnings increase of 8.11%, with a revenue spike of 2.58% for the current quarter. Positive growth is projected through the current year for both earnings and revenue as well. The gaming company was also able to increase its earnings by 18.18% and its revenue by 4.92% compared to the previous quarter. Las Vegas Sands is coming off a solid quarter, beating our estimate by 7.06%. If at least a truce is reached this weekend, shares of the gaming giant could see some upside. Marvell Technology Group Marvell Technology Group MRVL is part of the semiconductor industry that has been collectively battered by the Trump administration blacklisting of Chinese telecom giant Huawei, a big customer of U.S chips. Semiconductor stocks such as Nvidia NVDA have seen a drop of nearly 9% this quarter and Micron MU saw a 7% decline within the last 3 months despite surging double digits after an earnings beat Tuesday. Marvell has 42% of its revenue exposed to China. The company is currently a Zacks Rank #3 (Hold), and has had a spectacular year thus far. The chipmaker is up over 47% year-to-date and was able to slightly edge our consensus estimate in the past quarter, posting an EPS surprise of +6.67%. The Zacks Consensus Estimate is currently predicting a 67.65% earnings increase on top of a 17.79% surge in revenue for the company’s following fiscal year of 2021. If future trade talks can develop into reversing the blacklist put on Huawei, Marvell and the semiconductor industry as a whole may see a surge. Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >> Click to get this free reportLas Vegas Sands Corp. (LVS) : Free Stock Analysis ReportMarvell Technology Group Ltd. (MRVL) : Free Stock Analysis ReportThe Goldman Sachs Group, Inc. (GS) : Free Stock Analysis ReportNVIDIA Corporation (NVDA) : Free Stock Analysis ReportMicron Technology, Inc. (MU) : Free Stock Analysis ReportApplied Materials, Inc. (AMAT) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
Livongo Plots a Digital Health IPO to Raise $100 Million: Brainstorm Health Happy Friday, readers! You can officially add another name to the list of digital health firms seeking to go public. On Friday, Livongo – a chronic disease management firm using connected devices and online coaching communities to help treat and prevent conditions such as diabetes – filed Securities and Exchange Commission (SEC)documents for a public offering. Morgan Stanley,Goldman Sachs, andJ.P. Morganare all in as book managers for the proposed IPO (although Livongo noted that the “number of shares to be offered and the price range for the proposed offering have not been determined” to date). Livongo is reportedly looking toraise some $100 millionthrough the public offering. Earlier this week, the company announced a newintegration with common wearable devicessuch as theAppleWatch, Fitbit, and certain Samsung products, following an earlier offering on HIPAA-compliantAmazonAlexa devices. 2019 is expected to be a big year for digital health public offerings. Peloton, maker of the high-end, digitally connected exercise bike,already filed for a confidential IPOearlier this year, and companies such as Omada Health and Virta (also focused on chronic diseases and diabetes management) may very well follow suit. (Change Healthcare is another digitally focused health company to go public on the NASDAQ this week – more on that below.) The public markets for digital health sure seem like they’re heating up. Read on for the day’s news, and have a wonderful weekend. Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.com 1. DIGITAL HEALTHChange Healthcare’s CEO on its public offering.Speaking of digital health public offerings – my colleague and CEO whisperer extraordinaire Susie Gharib sat down with Change Healthcare chief executive Neil de Crescenzo on the company’s decision to IPO this week. Unlike some of the other firms following this wave, Change isn’t a startup – but the company believed it was an appropriate moment given the consistent lack of transparency in U.S. health care. “This is the time because we’ve really created a foundation as one of the largest healthcare IT companies in the country serving payers, providers, and consumers,” de Crescenzo tells Susie. “We built the foundation and now we have new investors who share our vision.”(Fortune) 2. INDICATIONSSarepta stock spikes following Pfizer gene therapy setback.Shares of rare drug maker Sarepta shot up more than 17% in Friday trading after drug giant Pfizer’s rival muscular dystrophy gene therapy elicited safety concerns in an early-stage trial. That adds to a string of victories for Sarepta, whose pioneering muscular dystrophy drug Exondys 51was approved amid significant controversy(and following a significant push from patient advocacy groups and rare drug makers).(Reuters) 3. THE BIG PICTUREHealth care dominates the Democratic debates.The first two nights of the Democratic primary debates prominently featured Medicare for All and universal health care coverage. Nearly every candidate endorsed some form of health reform meant to achieve (eventually, at least) universal coverage – but they took significantly different forms. Candidates such as Sens. Bernie Sanders, Elizabeth Warren, and others openly endorsed a plan that would more or less eliminate the role of private insurance; others, such as South Bend, Indiana Mayor Pete Buttigieg, pointed out that current Medicare for All proposals go further than the systems in place in socialized nations, and that public polling has shown significant ambivalence toward eliminating private plans altogether (and general confusion over what “Medicare for All” actually means). The issue is sure to dominate the election season going forward.(Fortune) 4. REQUIRED READINGThe Painful Financial Fallout of the Larry Nassar Case,by Mary PilonThe Market for Edible Insects Is Jumping,by Laura StamplerWhat Jony Ive’s Departure Means for Apple,by Anne SradersProduced by Sy Mukherjee@the_sy_guysayak.mukherjee@fortune.comFind past coverage.Sign up for other Fortune newsletters.
Why Hedge Fund Managers Are Wrong About the United Technologies-Raytheon Merger The announcement of the intent to mergeUnited Technologies'(NYSE: UTX)aerospace business with defense contractorRaytheon(NYSE: RTN)sent shock waves through the aviation industry, but it's fair to say the reaction hasn't been universally positive. In particular, some high-profile hedge fund managers are reportedly opposed to the deal. Let's take a look at what's going on and see whether there's a good case for opposing the deal. To understand why some fund managers oppose the deal, it's important to look at the original viewpoint of investors who bought the stock before the announcement of the UTC breakup plan. In a nutshell,hedge fund managers like Dan Loeb and Bill Ackman arguedthat a breakup of the company would likely lead to the constituent companies trading on valuations closer to their intrinsic value. The idea is thatindustrial conglomerates tend to trade at a discountto the sum of the valuations of the individual parts because investors increasingly want to make focused investments. A Raytheon missile taking off. Image source: Raytheon website. These arguments were seen as particularly applicable to UTC's Pratt & Whitney geared turbofan (GTF) aircraft engine -- one of two engine options available on theAirbusA320 NEO, a workhorse of the commercial aviation industry. Industrial conglomerates are valued on a one-year-out earnings/cash flow basis, but aviation companies often command valuation premiums with the understanding that products like the GTF generate strong long-term revenue after initial periods of cash-intensive investment. Ackman and Loeb got what they wanted whenUnited Technologies announced a breakup, as they expected the stock finally to unlock greater shareholder value. Unfortunately (at least from some investors' perspective), United Technologies' management decided to take a detour and merge with Raytheon. The move worried hedge fund managers such as Ackman, who is opposed to the deal and reportedly wrote to UTC CEO Greg Hayes expressing concern over the deal's strategic logic. Moreover, Ackman, a hedge fund manager who, before 2019, had lost money for his investors for four consecutive years, believes the deal will lower the quality of UTC's earnings. However, the most important criticism is that by agreeing to a deal (United Technologies shareholders will receive 57% of the new company with Raytheon shareholders getting 43%) at a time when UTC stock is seen as trading at a discount, management is not doing a great job for investors. As noted above, hedge fund managers bought the stockbecausethey perceived it as undervalued and were looking for a potential breakup to release value. In this line of thinking, it would be better to wait until the stock trades closer to what many investors believe it's worth. Putting all this together, when you look at it from the viewpoint of a fund manager who bought the stock for the potential breakup, and believes a revaluation is coming after the split and thinks the GTF is the key to UTC's long-term potential, then it's understandable that they would oppose the deal. Yet you don't have to think like a hedge fund manager worrying about your near-term investment thesis playing out. If you're prepared to take a longer-term view, there are four key reasons why the deal makes sense. First, UTC may well be undervalued right now, but who's to say that it won't remain that way in the future? Moreover, Raytheon's valuation could also increase, so if the timing and dynamics of the deal are right, then why shouldn't management seek to enhance shareholder value over the long term by doing the deal? It may not suit the investment thesis of fund managers, but it's the job of Hayes and his team to add value over the long term. Second, with the future absence of the less-cyclical cash flows from Otis and Carrier, UTC could probably use the cash flow from Raytheon's defense-heavy businessto support investment in products like the GTF; without having made the heavy investment (some $10 billion) in the GTF, the company wouldn't have the intrinsic value that Loeb and Ackman initially saw in the stock. Third, while the planned cost synergy of $1 billion (or 2.9% of Raytheon's sales) doesn't look great compared to the 7% that UTC took out when it bought Goodrich ( the Rockwell Collins acquisition is expected to generate 6%), the deal will save both companies a lot of future investment as the two companies can share technology and research and development platforms. Fourth, the mix of UTC's commercial-aviation-heavy sales stream and Raytheon's defense revenue is complementary, and will also balance out the cyclicality of UTC's earnings. All told, while the deal might not suit the immediate interests of fund managers concerned with yearly returns, it looks promising when it comes to creating long-term value for shareholders. It also presents an opportunity for both companies to fully capitalize on previous investments in technology and build businesses that enhance value for shareholders by creating world-leading products. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Lee Samahahas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
G20 stops short of denouncing protectionism, warns of global slowdown By Leika Kihara OSAKA (Reuters) - Leaders of the Group of 20 major economies warned on Saturday of growing risks to the global economy but stopped short of denouncing protectionism, calling instead for a free, fair trade environment after talks some members described as difficult. In a communique at the end of a two-day meeting in Japan's western city of Osaka, the leaders said global growth remained low and risks were tilted to the downside, as trade and geopolitical tensions have grown. "We strive to realise a free, fair, nondiscriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open," they said in a second successive summit statement that refrained from urging the need to resist protectionism. Japanese Prime Minister Shinzo Abe put on a brave face, stressing the G20 leaders had much in common, such as a shared recognition of the need for the group to remain key drivers of global growth. "The G20 agreed on fundamental principles backing a free trade system," Abe said, adding that the group had also pledged stronger action to improve the dispute settlement system of the World Trade Organization (WTO). In preparing the G20 statement, Japan, the chair of the meetings, has sought common ground between the United States, which opposes language denouncing protectionism, and other nations seeking a stronger warning against trade tension. "There were no breakthrough decisions but ... all participants have confirmed their aspiration to work further on improving the global trade system, including the aspiration to work on WTO reform," Russian President Vladimir Putin told a news conference on Saturday. "The fact that all have confirmed the need of this process and their readiness to work toward this process is already positive." RESUMING TALKS INSUFFICIENT Widening fallout from the U.S.-China trade war has jolted markets and tested the resolve of G20 members to present a united front in averting a global recession. The United States and China agreed to restart trade talks, offering some hope that the world's two largest economies can resolve the bitter dispute. The European Union and South American bloc Mercosur agreed a free trade treaty on Friday, committing to more open markets in defiance of the rising tide of protectionism. "This deal promotes our values and supports a multilateral, rules-based system," European Commission President Jean-Claude Juncker told reporters on Saturday, taking a swipe at U.S. President Donald Trump's aversion to multilateralism. However, Christine Lagarde, managing director of the International Monetary Fund, warned the global economy had hit a "rough patch" due to the trade conflicts, and urged G20 policymakers to reduce tariffs and other trade obstacles. "While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future," she said in a statement. Last year's G20 summit in Buenos Aires was the first to drop the language on the need to denounce protectionism, deferring to a request by Washington, which is sensitive to criticism of the tariffs it is slapping on some G20 members. (Additional reporting by Katya Golubkova; Editing by Tom Brown and Clarence Fernandez)
The Key Takeaways From General Electric at the Paris Air Show There are the headlines and then there are the details behind the headlines. The former read very well forGeneral Electric(NYSE: GE)at the recent Paris Air Show, because the company undoubtedly had a very successful event. However, it's clear that there are some negative points as well. Let's have a look at the key takeaways. Many commentators declared GE as the big winner from Le Bourget -- and for good reason. After all, GE Aviation booked some $55 billion worth of orders, including orders and commitments for 1,150 LEAP engines and long-term service agreements (LTSA) worth around $50.2 billion. The CFM LEAP engine. Image source: Chris New for GE Reports. It gets better. ABloomberg articleciting Cirium research claimed GE's joint venture with Safran, CFM International, won nearly three-quarters of engine orders on the Airbus A320neo -- highly significant as CFM's LEAP competes directly with an engine made byUnited Technologies'(NYSE: UTX)Pratt & Whitney on the aircraft. It gets even better. One of the major orders (some $20 billion) was with Indian budget airline IndiGo for LEAP engines (including an LTSA) to power 280 of its next A320neo and A321neo aircraft. This is highly significant as IndiGo had previously used Pratt & Whitney's geared turbofan (GTF) on its A320neo family of aircraft. In addition, CFM signed a $23 billion deal to sell 200 LEAP engines to AirAsia to power 100 of its Airbus A321neo airplanes. In addition, International Airlines Group (IAG) ordered 100 LEAP engines to power 55 Airbus A320neo aircraft, and signed a letter of intent for 200Boeing(NYSE: BA)737 MAX airplanes -- the LEAP is the sole engine option on the Boeing 737 MAX. Putting it all together, GE appears to be winning against United Technologies on the Airbus A320neo family, and there was even some unexpectedly good news with the IAG orders on Boeing's still-grounded 737 MAX. Time to declare victory? Unfortunately, it's rarely that clear and the following points should be noted. First, the deal values that GE is reporting are in terms of list prices, and it's likely that discounts were offered in order to win the business. Second, the two major deals signed at the event can't be regarded as major surprises. For example, AirAsia has been a CFM customer for a couple of decades and was one of the first to order LEAP engines. The other big deal (IndiGo) is obviously good news for GE, but it might have been influenced by the well-publicized problems that IndiGo has had with Pratt & Whitney's GTF. In fact, IndiGo has previously had to ground aircraft while waiting for a fix for the technical problems on the GTF engine. However, Pratt & Whitney appears to have fixed the early teething problems on the GTF -- ones that were exacerbated by heat & dust -- and its GTF production is on track in 2019. In other words, the IndiGo decision, although understandable, might come down to issues that have subsequently been rectified. Moreover, Pratt & Whitney CEO Bob Leduc has said that GE was more aggressive on price than Pratt was willing to be over the IndiGo order. GE continues to claim the LEAP has an efficacy advantage over the GTF -- specifically, a 6% higher utilization, meaning the LEAP requires relatively less servicing. However, this stat is probably impacted by the previous teething problems that the GTF had. Third, the Boeing 737 MAX grounding and subsequent production cut still loom over GE. For example, GE Aviation President David Joyce gave a presentation at the air show and said the cash impact in the second quarter from the issue was tracking closer to $300 million --CEO Larry Culp had previously givena figure of $200 million-$300 million. Furthermore, outside of this figure, GE doesn't have anything else baked into its aviation guidance. All told, the LEAP win rate over the GTF at the Paris Air Show looks impressive, but it's largely a consequence of two big deals, and it would be surprising if CFM continues to maintain such a win ratio. The GTF remains a formidable competitor, and it's far from clear what the final impact of the 737 MAX issue will be on GE. That said, it's impossible to view the Paris Air Show as anything but positive for GE -- and it sets up the company nicely for the remainder of 2019. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Lee Samahahas no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
Naspers Delays Its Tencent Spin-Off: What Investors Need to Know I recently wrote aboutNaspers(NASDAQOTH: NPSNY)and the upcoming spin-off of its international internet assets. These assets mainly include a massive 31% stake in Chinese internet giantTencent(NASDAQOTH: TCEHY), as well as roughly 20 other smaller internet start-ups in emerging markets. Naspers first announced its intention to list the internet assets on Euronextback in March, then gave more particulars around the new company and schedule of events inlate May. Those plans were recently abruptly delayed, as Naspers announced it was pushing back both its general meeting of stockholders as well as the date of the potential spin-off. The company also revealed that the new listing, formerly referred to as "NewCo," will now be called "Prosus," a Latin word that has multiple meanings but in this case translates to "forwards." Naming issues aside, is the Prosus spin-off postponement any reason for concern, or just a frustrating delay that's still likely to unlock the same value, just two month later? Image source: Getty Images. The good news for Naspers shareholders is that the delay doesn't seem to have anything to do with the merits or mechanics of the spin-off. The culprit actually appears to be a minor mistake on the part of a third-party company that was responsible for mailing the general circular to Naspers investors ahead of its general meeting. That's right -- a $100 billion-plus transaction is being held up because of a minor snafu with mail labels. According to the press release: An administrative error by an external service provider has resulted in certain of the copies of the circular delivered to shareholders being incorrectly labelled. The service provider concerned has advised Naspers that the error occurred in pairing the names and addresses of some shareholders for purposes of printing labels on the envelopes in which the physical copies of the circular were delivered to certain shareholders. This meant that some circulars were sent to the correct addresses of the affected shareholders, but that incorrect names appeared on these envelopes (i.e. the name and address did not match). This could in some cases lead to confusion. It's good that Naspers is playing more safe than sorry for its shareholders, although it is a pretty safe bet that shareholders will vote in favor of the move regardless. The spin-off is designed to close thevaluation gapbetween the company's share price and its Tencent stake, an annoyance that shareholders have long sought to rectify. That makes this rather minor mistake frustrating for shareholders who were hoping to receive their new Prosus shares orAmerican Depositary Receiptssooner. The general meeting will be moved from June 28 to Aug. 23, and the listing of Prosus will now take place some time in September, as opposed to July 23 -- a delay of about two months. If you were already a Naspers shareholder, I would continue to hold the shares, as the revised timeline doesn't affect the intrinsic value of Naspers' existing assets. Remember, not only is Naspers still trading at roughly a 30% discount to its Tencent stake alone, but Prosus will also contain some 20 other internet companies. Although the value of Prosus will largely be determined by the value of Tencent in the near term, which will be mostly affected by the health of Chinese consumers, there are other significant assets in Prosus across online classifieds, food delivery, fintech, and social media in many emerging markets. In its recent earnings release, Naspers revealed a strong 29% overall revenue growth last quarter, along with better profitability across its businesses, including PayU, Naspers' wholly owned payment processing platform. Other positives included "significantly reduced" losses in its e-commerce operations and the revelation of "larger ambitions" in food delivery. Perhaps most interestingly, Naspers reminded shareholders that its non-Tencent assets have compounded at a 20%internal rate of returnsince 2008, meaning the firm isn't just a one-trick pony. The bottom line is that nothing has fundamentally gone awry with Naspers, and its spin-off is looking as interesting as ever, with even more time for investors to buy in ahead of the September Prosus listing on Euronext. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Billy Dubersteinowns shares of Naspers Limited (ADR). His clients may own shares of the companies listed. The Motley Fool owns shares of and recommends Tencent Holdings. The Motley Fool has adisclosure policy.
2019 FIFA Women's World Cup: Alex Morgan was the unsung hero of the USWNT's win over France PARIS — Megan Rapinoe stole the show, but Alex Morgan was every bit as important in the United States’ 2-1 World Cup quarterfinal win against France on Friday. It was Morgan, the U.S. captain at Parc des Princes, who drew the foul that set up Rapinoe’s free kick goal less than five minutes into the match, giving the Americans a lead they would never relinquish. And it was Morgan’s seeing-eye through pass to winger Tobin Heath that started the sequence that lead to Rapinoe’s second — the eventual game-winner — with a half-hour left to play. “Alex put her heart and soul into this game,” U.S. coach Jill Ellis said afterward. “I think she showed a lot of guts tonight.” She also showed her versatility. Morgan came into the match tied in the competition’s Golden Boot race with England’s Ellen White and Australia’s Sam Kerr. (Rapinoe also has five goals.) But all of Morgan’s strikes came in the tournament-opening 13-0 rout of Thailand way back on June 11. Ellis rested her in the second group game against Chile and pulled her halfway through the first round finale vs. Sweden after Morgan took a vicious kick the calf. Knowing that, Spain targeted her in the round of 16, fouling her repeatedly, and heading into the France match, it was fair to wonder if she was more banged up that she or Ellis was letting on. Alex Morgan didn't score in Friday's 2-1 win against France, but she played a huge role in the United States advancing to the semifinals of the FIFA Women's World Cup. (Matthew Lewis/Getty) Injured or not, though, there was no way Morgan wasn’t starting this game, which was being billed by many beforehand as the biggest in women’s soccer history. She even shook off a first-half ball to the head against Les Bleues that left her wobbly. After returning to the field, she switched things up, going from leading the three-woman front line line to more of a deeper-lying playmaker. “I think I had a different role tonight,” Morgan said. “We saw their center backs dropping in and not really wanting to get exposed in behind, so I was able to get on the ball more than I have in the past, especially against Spain.” Said defender Abby Dahlkemper: “She proved why she’s one of the top strikers in the world, not only being able to score goals but set up goals as well.” But Morgan’s contributions in this match weren’t only on the attacking end. In a game in which the hosts enjoyed more than 60 percent of the possession, her high-pressing of the French players led to countless rushed and misplayed passes. “It just gives the other team’s midfield less time on the ball and they’re kind of constantly looking over their shoulder,” said U.S. destroyer Samantha Mewis, who once again started in place of Lindsey Horan, of Morgan’s tireless running. “It makes my job easier, but it also inspires me that then I have to do that for the back line.” Story continues “She worked so hard defensively, and was kind of that link player in front of the CBs to connect in transition,” added Dahlkemper. That willingness to the dirty work that doesn’t end up on the scoresheet is the stuff championships teams are made of. When it comes from perhaps the squad’s best player and undoubtedly its biggest star, it matters that much more. “Starting from the top down, with the work that she does, it carries through to the rest of the team and sets such a good example.” Mewis said. “We know that if she’s working that hard, we all have to work that hard.” “When you’re the lone striker, sometimes it’s challenging, but she embraces that role,” Ellis said. “She worked her tail off.” More from Yahoo Sports: Rose responds to LaVar Ball's cringeworthy remark Former WWE star tells harrowing depression tale Brady takes subtle shot at ESPN star's 'cliff' comment Report: Thompson, Warriors expected to reach max deal View comments
Here’s What Hedge Funds Think About Boise Cascade Co (BCC) The government requires hedge funds and wealthy investors that crossed the $100 million equity holdings threshold are required to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on March 31. We at Insider Monkey have made an extensive database of nearly 750 of those elite funds and famous investors' filings. In this article, we analyze how these elite funds and prominent investors traded Boise Cascade Co (NYSE:BCC) based on those filings. IsBoise Cascade Co (NYSE:BCC)an attractive stock to buy now? Prominent investors are reducing their bets on the stock. The number of long hedge fund positions were cut by 2 in recent months. Our calculations also showed that BCC isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to take a glance at the recent hedge fund action surrounding Boise Cascade Co (NYSE:BCC). At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from the previous quarter. The graph below displays the number of hedge funds with bullish position in BCC over the last 15 quarters. With the smart money's sentiment swirling, there exists a few noteworthy hedge fund managers who were adding to their stakes significantly (or already accumulated large positions). Among these funds,Citadel Investment Groupheld the most valuable stake in Boise Cascade Co (NYSE:BCC), which was worth $9.6 million at the end of the first quarter. On the second spot was Millennium Management which amassed $8.1 million worth of shares. Moreover, AQR Capital Management, Two Sigma Advisors, and Renaissance Technologies were also bullish on Boise Cascade Co (NYSE:BCC), allocating a large percentage of their portfolios to this stock. Due to the fact that Boise Cascade Co (NYSE:BCC) has experienced a decline in interest from the smart money, logic holds that there was a specific group of money managers that elected to cut their full holdings by the end of the third quarter. Interestingly, Paul Marshall and Ian Wace'sMarshall Wace LLPdropped the biggest stake of the 700 funds watched by Insider Monkey, totaling about $0.4 million in stock, and Hoon Kim's Quantinno Capital was right behind this move, as the fund dumped about $0.4 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 2 funds by the end of the third quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Boise Cascade Co (NYSE:BCC) but similarly valued. We will take a look at Greenbrier Companies Inc (NYSE:GBX), NetGear, Inc. (NASDAQ:NTGR), Homology Medicines, Inc. (NASDAQ:FIXX), and New York Mortgage Trust, Inc. (NASDAQ:NYMT). This group of stocks' market values resemble BCC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GBX,11,28532,0 NTGR,16,22466,2 FIXX,7,200196,-1 NYMT,6,15030,-3 Average,10,66556,-0.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $67 million. That figure was $39 million in BCC's case. NetGear, Inc. (NASDAQ:NTGR) is the most popular stock in this table. On the other hand New York Mortgage Trust, Inc. (NASDAQ:NYMT) is the least popular one with only 6 bullish hedge fund positions. Boise Cascade Co (NYSE:BCC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BCC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BCC were disappointed as the stock returned -6.2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Northwest Natural Holding Company (NWN) "The global economic environment is very favorable for investors. Economies are generally strong, but not too strong. Employment levels are among the strongest for many decades. Interest rates are paused at very low levels, and the risk of significant increases in the medium term seems low. Financing for transactions is freely available to good borrowers, but not in major excess. Covenants are lighter than they were five years ago, but the extreme excesses seen in the past do not seem prevalent yet today. Despite this apparent ‘goldilocks’ market environment, we continue to worry about a world where politics are polarized almost everywhere, interest rates are low globally, and equity valuations are at their peak," are the words ofBrookfield Asset Management. Brookfield was right about politics as stocks experienced their second worst May since the 1960s due to escalation of trade disputes. We pay attention to what hedge funds are doing in a particular stock before considering a potential investment because it works for us. So let’s take a glance at the smart money sentiment towards Northwest Natural Holding Company (NYSE:NWN) and see how it was affected. Northwest Natural Holding Company (NYSE:NWN)has experienced an increase in hedge fund sentiment lately. Our calculations also showed that NWN isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to view the latest hedge fund action regarding Northwest Natural Holding Company (NYSE:NWN). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in NWN over the last 15 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Northwest Natural Holding Company (NYSE:NWN), with a stake worth $44.7 million reported as of the end of March. Trailing Renaissance Technologies was Fisher Asset Management, which amassed a stake valued at $13.2 million. GLG Partners, Two Sigma Advisors, and GAMCO Investors were also very fond of the stock, giving the stock large weights in their portfolios. As one would reasonably expect, key money managers were breaking ground themselves.GLG Partners, managed by Noam Gottesman, initiated the largest position in Northwest Natural Holding Company (NYSE:NWN). GLG Partners had $2.9 million invested in the company at the end of the quarter. Sander Gerber'sHudson Bay Capital Managementalso made a $0.5 million investment in the stock during the quarter. The other funds with brand new NWN positions are Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitaland Michael Platt and William Reeves'sBlueCrest Capital Mgmt.. Let's now take a look at hedge fund activity in other stocks similar to Northwest Natural Holding Company (NYSE:NWN). These stocks are Dillard's, Inc. (NYSE:DDS), International Speedway Corporation (NASDAQ:ISCA), Crocs, Inc. (NASDAQ:CROX), and Capitol Federal Financial, Inc. (NASDAQ:CFFN). This group of stocks' market valuations are closest to NWN's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DDS,28,154651,14 ISCA,19,167619,-1 CROX,25,393812,-1 CFFN,11,157223,2 Average,20.75,218326,3.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 20.75 hedge funds with bullish positions and the average amount invested in these stocks was $218 million. That figure was $69 million in NWN's case. Dillard's, Inc. (NYSE:DDS) is the most popular stock in this table. On the other hand Capitol Federal Financial, Inc. (NASDAQ:CFFN) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Northwest Natural Holding Company (NYSE:NWN) is even less popular than CFFN. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on NWN, though not to the same extent, as the stock returned 6.1% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Craft Brew Alliance Inc (BREW) "Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Craft Brew Alliance Inc (NASDAQ:BREW). Hedge fund interest inCraft Brew Alliance Inc (NASDAQ:BREW)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare BREW to other stocks including The First Bancorp, Inc. (NASDAQ:FNLC), Allot Ltd. (NASDAQ:ALLT), and Strongbridge Biopharma plc (NASDAQ:SBBP) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's review the recent hedge fund action encompassing Craft Brew Alliance Inc (NASDAQ:BREW). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. On the other hand, there were a total of 11 hedge funds with a bullish position in BREW a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Craft Brew Alliance Inc (NASDAQ:BREW) was held byCannell Capital, which reported holding $11.7 million worth of stock at the end of March. It was followed by Marcato Capital Management with a $7 million position. Other investors bullish on the company included Renaissance Technologies, Marcato Capital Management, and Arrowstreet Capital. Since Craft Brew Alliance Inc (NASDAQ:BREW) has experienced declining sentiment from hedge fund managers, we can see that there exists a select few fund managers who sold off their positions entirely by the end of the third quarter. At the top of the heap, Peter Algert and Kevin Coldiron'sAlgert Coldiron Investorsdumped the largest investment of the 700 funds tracked by Insider Monkey, valued at an estimated $0.4 million in stock, and Jordan Moelis and Jeff Farroni's Deep Field Asset Management was right behind this move, as the fund sold off about $0.3 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Craft Brew Alliance Inc (NASDAQ:BREW) but similarly valued. These stocks are The First Bancorp, Inc. (NASDAQ:FNLC), Allot Ltd. (NASDAQ:ALLT), Strongbridge Biopharma plc (NASDAQ:SBBP), and Xeris Pharmaceuticals, Inc. (NASDAQ:XERS). All of these stocks' market caps are closest to BREW's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FNLC,1,5532,0 ALLT,10,54994,0 SBBP,15,62949,1 XERS,7,56936,4 Average,8.25,45103,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $24 million in BREW's case. Strongbridge Biopharma plc (NASDAQ:SBBP) is the most popular stock in this table. On the other hand The First Bancorp, Inc. (NASDAQ:FNLC) is the least popular one with only 1 bullish hedge fund positions. Craft Brew Alliance Inc (NASDAQ:BREW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BREW wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BREW were disappointed as the stock returned -4.1% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Coeur Mining, Inc. (CDE) A Good Stock To Buy? At Insider Monkey we follow nearly 750 of the best-performing investors and even though many of them lost money in the last couple of months of 2018 (some actually delivered very strong returns), the history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable for us to imitate their activity. Of course, even the best money managers can sometimes get it wrong, but following some of their picks gives us a better chance to outperform the crowd than picking a random stock and this is where our research comes in. IsCoeur Mining, Inc. (NYSE:CDE)a bargain? Investors who are in the know are in a pessimistic mood. The number of bullish hedge fund bets dropped by 2 recently. Our calculations also showed that cde isn't among the30 most popular stocks among hedge funds. At the moment there are a multitude of gauges stock traders put to use to analyze stocks. Some of the most useful gauges are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the best picks of the top fund managers can outpace their index-focused peers by a significant amount (see the details here). We're going to view the key hedge fund action encompassing Coeur Mining, Inc. (NYSE:CDE). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CDE over the last 15 quarters. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were adding to their stakes significantly (or already accumulated large positions). More specifically,Renaissance Technologieswas the largest shareholder of Coeur Mining, Inc. (NYSE:CDE), with a stake worth $10.2 million reported as of the end of March. Trailing Renaissance Technologies was D E Shaw, which amassed a stake valued at $4 million. Sprott Asset Management, Sloane Robinson Investment Management, and Arrowstreet Capital were also very fond of the stock, giving the stock large weights in their portfolios. Because Coeur Mining, Inc. (NYSE:CDE) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there were a few hedge funds that decided to sell off their positions entirely heading into Q3. Interestingly, Thomas E. Claugus'sGMT Capitaldropped the biggest position of all the hedgies followed by Insider Monkey, comprising an estimated $4.7 million in stock. Paul Marshall and Ian Wace's fund,Marshall Wace LLP, also cut its stock, about $3.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 2 funds heading into Q3. Let's now review hedge fund activity in other stocks similar to Coeur Mining, Inc. (NYSE:CDE). We will take a look at Connecticut Water Service, Inc. (NASDAQ:CTWS), Newpark Resources Inc (NYSE:NR), Goldman Sachs BDC, Inc. (NYSE:GSBD), and Malibu Boats Inc (NASDAQ:MBUU). This group of stocks' market values are similar to CDE's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CTWS,4,22160,-1 NR,15,42423,5 GSBD,1,3812,-3 MBUU,18,96784,-4 Average,9.5,41295,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $25 million in CDE's case. Malibu Boats Inc (NASDAQ:MBUU) is the most popular stock in this table. On the other hand Goldman Sachs BDC, Inc. (NYSE:GSBD) is the least popular one with only 1 bullish hedge fund positions. Coeur Mining, Inc. (NYSE:CDE) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CDE wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CDE were disappointed as the stock returned -9.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here is What Hedge Funds Think About BlueLinx Holdings Inc. (BXC) We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of BlueLinx Holdings Inc. (NYSE:BXC) based on that data. Hedge fund interest inBlueLinx Holdings Inc. (NYSE:BXC)shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Cutera, Inc. (NASDAQ:CUTR), BayCom Corp (NASDAQ:BCML), and Aclaris Therapeutics, Inc. (NASDAQ:ACRS) to gather more data points. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to take a glance at the key hedge fund action surrounding BlueLinx Holdings Inc. (NYSE:BXC). Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the fourth quarter of 2018. On the other hand, there were a total of 13 hedge funds with a bullish position in BXC a year ago. With hedge funds' capital changing hands, there exists a few notable hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions). Among these funds,Nokomis Capitalheld the most valuable stake in BlueLinx Holdings Inc. (NYSE:BXC), which was worth $32.1 million at the end of the first quarter. On the second spot was Adage Capital Management which amassed $22.7 million worth of shares. Moreover, Tontine Asset Management, Coliseum Capital, and Venator Capital Management were also bullish on BlueLinx Holdings Inc. (NYSE:BXC), allocating a large percentage of their portfolios to this stock. Since BlueLinx Holdings Inc. (NYSE:BXC) has witnessed falling interest from hedge fund managers, it's easy to see that there is a sect of hedge funds who sold off their full holdings last quarter. At the top of the heap, Jim Simons'sRenaissance Technologiesdropped the largest position of all the hedgies monitored by Insider Monkey, comprising about $1.2 million in stock, and Jeffrey Pierce's Snow Park Capital Partners was right behind this move, as the fund said goodbye to about $1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's check out hedge fund activity in other stocks similar to BlueLinx Holdings Inc. (NYSE:BXC). We will take a look at Cutera, Inc. (NASDAQ:CUTR), BayCom Corp (NASDAQ:BCML), Aclaris Therapeutics, Inc. (NASDAQ:ACRS), and Willis Lease Finance Corporation (NASDAQ:WLFC). This group of stocks' market valuations match BXC's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CUTR,14,55269,-3 BCML,4,21871,0 ACRS,16,105972,-1 WLFC,2,21209,1 Average,9,51080,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $83 million in BXC's case. Aclaris Therapeutics, Inc. (NASDAQ:ACRS) is the most popular stock in this table. On the other hand Willis Lease Finance Corporation (NASDAQ:WLFC) is the least popular one with only 2 bullish hedge fund positions. BlueLinx Holdings Inc. (NYSE:BXC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BXC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on BXC were disappointed as the stock returned -18.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Consolidated Communications Holdings Inc (CNSL) The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Consolidated Communications Holdings Inc (NASDAQ:CNSL). IsConsolidated Communications Holdings Inc (NASDAQ:CNSL)a buy right now? Investors who are in the know are in a pessimistic mood. The number of long hedge fund positions retreated by 3 recently. Our calculations also showed that cnsl isn't among the30 most popular stocks among hedge funds.CNSLwas in 11 hedge funds' portfolios at the end of March. There were 14 hedge funds in our database with CNSL positions at the end of the previous quarter. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's check out the recent hedge fund action surrounding Consolidated Communications Holdings Inc (NASDAQ:CNSL). 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 -21% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CNSL over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions). Among these funds,Arrowstreet Capitalheld the most valuable stake in Consolidated Communications Holdings Inc (NASDAQ:CNSL), which was worth $6.5 million at the end of the first quarter. On the second spot was Citadel Investment Group which amassed $2.6 million worth of shares. Moreover, Renaissance Technologies, Point72 Asset Management, and D E Shaw were also bullish on Consolidated Communications Holdings Inc (NASDAQ:CNSL), allocating a large percentage of their portfolios to this stock. Since Consolidated Communications Holdings Inc (NASDAQ:CNSL) has experienced declining sentiment from hedge fund managers, it's easy to see that there was a specific group of money managers who sold off their full holdings in the third quarter. It's worth mentioning that John Brennan'sSirios Capital Managementdumped the largest stake of all the hedgies monitored by Insider Monkey, totaling an estimated $3.8 million in stock, and Israel Englander's Millennium Management was right behind this move, as the fund cut about $1.3 million worth. These moves are important to note, as total hedge fund interest fell by 3 funds in the third quarter. Let's go over hedge fund activity in other stocks similar to Consolidated Communications Holdings Inc (NASDAQ:CNSL). These stocks are Triumph Bancorp Inc (NASDAQ:TBK), Valhi, Inc. (NYSE:VHI), Century Aluminum Co (NASDAQ:CENX), and Huami Corporation (NYSE:HMI). This group of stocks' market values match CNSL's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TBK,5,56315,-1 VHI,6,5844,-3 CENX,12,36782,1 HMI,4,7550,0 Average,6.75,26623,-0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 6.75 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $13 million in CNSL's case. Century Aluminum Co (NASDAQ:CENX) is the most popular stock in this table. On the other hand Huami Corporation (NYSE:HMI) is the least popular one with only 4 bullish hedge fund positions. Consolidated Communications Holdings Inc (NASDAQ:CNSL) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CNSL wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CNSL were disappointed as the stock returned -55.2% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Novavax, Inc. (NVAX) It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Novavax, Inc. (NASDAQ:NVAX) changed during the first quarter. Novavax, Inc. (NASDAQ:NVAX)has seen a decrease in hedge fund interest in recent months. Our calculations also showed that NVAX isn't among the30 most popular stocks among hedge funds. According to most shareholders, hedge funds are viewed as worthless, outdated investment vehicles of the past. While there are over 8000 funds trading at the moment, Our researchers choose to focus on the masters of this club, about 750 funds. These investment experts watch over most of the hedge fund industry's total capital, and by tracking their unrivaled equity investments, Insider Monkey has revealed a number of investment strategies that have historically exceeded Mr. Market. Insider Monkey's flagship hedge fund strategy beat the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to take a peek at the latest hedge fund action surrounding Novavax, Inc. (NASDAQ:NVAX). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the previous quarter. By comparison, 12 hedge funds held shares or bullish call options in NVAX a year ago. With hedgies' capital changing hands, there exists a few key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions). The largest stake in Novavax, Inc. (NASDAQ:NVAX) was held byCitadel Investment Group, which reported holding $3.1 million worth of stock at the end of March. It was followed by Great Point Partners with a $2.5 million position. Other investors bullish on the company included Rock Springs Capital Management, Two Sigma Advisors, and Renaissance Technologies. Since Novavax, Inc. (NASDAQ:NVAX) has experienced falling interest from the smart money, we can see that there was a specific group of fund managers that slashed their positions entirely by the end of the third quarter. At the top of the heap, Julian Baker and Felix Baker'sBaker Bros. Advisorsdumped the largest investment of the "upper crust" of funds watched by Insider Monkey, worth close to $8.7 million in stock. John M. Angelo and Michael L. Gordon's fund,Angelo Gordon & Co, also dropped its stock, about $6 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter. Let's now review hedge fund activity in other stocks similar to Novavax, Inc. (NASDAQ:NVAX). We will take a look at NCS Multistage Holdings, Inc. (NASDAQ:NCSM), Gold Resource Corporation (NYSE:GORO), Cytosorbents Corp (NASDAQ:CTSO), and Kodiak Sciences Inc (NASDAQ:KOD). This group of stocks' market valuations match NVAX's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NCSM,5,1509,1 GORO,9,14483,2 CTSO,7,7323,-2 KOD,5,86678,0 Average,6.5,27498,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $9 million in NVAX's case. Gold Resource Corporation (NYSE:GORO) is the most popular stock in this table. On the other hand NCS Multistage Holdings, Inc. (NASDAQ:NCSM) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Novavax, Inc. (NASDAQ:NVAX) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately NVAX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on NVAX were disappointed as the stock returned -53.3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Photronics, Inc. (PLAB) It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Photronics, Inc. (NASDAQ:PLAB) changed during the first quarter. Photronics, Inc. (NASDAQ:PLAB)shareholders have witnessed a decrease in support from the world's most elite money managers in recent months.PLABwas in 13 hedge funds' portfolios at the end of the first quarter of 2019. There were 16 hedge funds in our database with PLAB positions at the end of the previous quarter. Our calculations also showed that PLAB isn't among the30 most popular stocks among hedge funds. To the average investor there are tons of signals shareholders can use to appraise their holdings. A pair of the less utilized signals are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outperform the market by a superb margin (see the details here). Let's analyze the key hedge fund action surrounding Photronics, Inc. (NASDAQ:PLAB). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of -19% from the fourth quarter of 2018. The graph below displays the number of hedge funds with bullish position in PLAB over the last 15 quarters. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions). When looking at the institutional investors followed by Insider Monkey, Jim Simons'sRenaissance Technologieshas the largest position in Photronics, Inc. (NASDAQ:PLAB), worth close to $24.7 million, amounting to less than 0.1%% of its total 13F portfolio. On Renaissance Technologies's heels isRoyce & Associates, managed by Chuck Royce, which holds a $11.1 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions contain Steven Baughman'sDivisar Capital, D. E. Shaw'sD E Shawand Cliff Asness'sAQR Capital Management. Because Photronics, Inc. (NASDAQ:PLAB) has witnessed declining sentiment from the smart money, logic holds that there exists a select few hedge funds that decided to sell off their entire stakes by the end of the third quarter. It's worth mentioning that Noam Gottesman'sGLG Partnersdropped the biggest position of all the hedgies followed by Insider Monkey, comprising close to $7.4 million in stock. Noam Gottesman's fund,GLG Partners, also cut its stock, about $1.5 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Photronics, Inc. (NASDAQ:PLAB) but similarly valued. We will take a look at Kura Oncology, Inc. (NASDAQ:KURA), Acorda Therapeutics Inc (NASDAQ:ACOR), Clean Energy Fuels Corp (NASDAQ:CLNE), and i3 Verticals, Inc. (NASDAQ:IIIV). This group of stocks' market caps are closest to PLAB's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KURA,17,207125,2 ACOR,22,161061,0 CLNE,11,32009,3 IIIV,8,66259,0 Average,14.5,116614,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $117 million. That figure was $68 million in PLAB's case. Acorda Therapeutics Inc (NASDAQ:ACOR) is the most popular stock in this table. On the other hand i3 Verticals, Inc. (NASDAQ:IIIV) is the least popular one with only 8 bullish hedge fund positions. Photronics, Inc. (NASDAQ:PLAB) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately PLAB wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); PLAB investors were disappointed as the stock returned -14.1% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
I Ran A Stock Scan For Earnings Growth And Anhui Conch Cement (HKG:914) Passed With Ease Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But as Warren Buffett has mused, 'If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.' When they buy such story stocks, investors are all too often the patsy. If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested inAnhui Conch Cement(HKG:914). While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. Check out our latest analysis for Anhui Conch Cement Over the last three years, Anhui Conch Cement has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don't think the percent growth rate is particularly meaningful. Thus, it makes sense to focus on more recent growth rates, instead. Like a firecracker arcing through the night sky, Anhui Conch Cement's EPS shot from CN¥3.49 to CN¥5.87, over the last year. Year on year growth of 68% is certainly a sight to behold. I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). Not all of Anhui Conch Cement's revenue this year is revenuefrom operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. Anhui Conch Cement maintained stable EBIT margins over the last year, all while growing revenue 74% to CN¥140b. That's a real positive. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. In investing, as in life, the future matters more than the past. So why not check out thisfreeinteractive visualization of Anhui Conch Cement'sforecastprofits? As a general rule, I think it worth considering how much the CEO is paid, since unreasonably high rates could be considered against the interests of shareholders. I discovered that the median total compensation for the CEOs of companies like Anhui Conch Cement, with market caps over CN¥55b, is about CN¥4.9m. The Anhui Conch Cement CEO received total compensation of just CN¥1.9m in the year to December 2018. That's clearly well below average, so at a glance, that arrangement seems generous to shareholders, and points to a modest remuneration culture. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of good governance, more generally. Anhui Conch Cement's earnings have taken off like any random crypto-currency did, back in 2017. Such fast EPS growth makes me wonder if the business has hit an inflection point (and I mean the good kind.) At the same time the reasonable CEO compensation reflects well on the board of directors. So Anhui Conch Cement looks like it could be a good quality growth stock, at first glance. That's worth watching. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Anhui Conch Cement is trading on a high P/E or a low P/E, relative to its industry. You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is GNC Holdings Inc (GNC) A Good Stock To Buy? Hedge funds are not perfect. They have their bad picks just like everyone else. Facebook, a stock hedge funds have loved dearly, lost nearly 40% of its value at one point in 2018. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 20 S&P 500 stocks among hedge funds beat the S&P 500 Index by more than 6 percentage points so far in 2019. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of GNC Holdings Inc (NYSE:GNC). Hedge fund interest inGNC Holdings Inc (NYSE:GNC)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare GNC to other stocks including Bankwell Financial Group, Inc. (NASDAQ:BWFG), Gladstone Land Corporation (NASDAQ:LAND), and LCNB Corp. (NASDAQ:LCNB) to get a better sense of its popularity. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's review the fresh hedge fund action surrounding GNC Holdings Inc (NYSE:GNC). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2018. By comparison, 17 hedge funds held shares or bullish call options in GNC a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. When looking at the institutional investors followed by Insider Monkey, Parag Vora'sHG Vora Capital Managementhas the biggest position in GNC Holdings Inc (NYSE:GNC), worth close to $13.7 million, amounting to 1% of its total 13F portfolio. The second most bullish fund manager is Douglas Dethy ofDC Capital Partners, with a $4.1 million position; 3% of its 13F portfolio is allocated to the stock. Other peers that are bullish contain Himanshu H. Shah'sShah Capital Management, D. E. Shaw'sD E Shawand Jim Simons'sRenaissance Technologies. Due to the fact that GNC Holdings Inc (NYSE:GNC) has faced bearish sentiment from the smart money, it's safe to say that there is a sect of hedgies who sold off their full holdings in the third quarter. Intriguingly, Glenn Russell Dubin'sHighbridge Capital Managementcut the biggest position of the 700 funds followed by Insider Monkey, valued at close to $7.2 million in stock. Noam Gottesman's fund,GLG Partners, also dropped its stock, about $0.8 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as GNC Holdings Inc (NYSE:GNC) but similarly valued. We will take a look at Bankwell Financial Group, Inc. (NASDAQ:BWFG), Gladstone Land Corporation (NASDAQ:LAND), LCNB Corp. (NASDAQ:LCNB), and Natural Gas Services Group, Inc. (NYSE:NGS). This group of stocks' market values match GNC's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BWFG,5,47956,0 LAND,3,2192,0 LCNB,2,9415,-1 NGS,7,20491,0 Average,4.25,20014,-0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 4.25 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $27 million in GNC's case. Natural Gas Services Group, Inc. (NYSE:NGS) is the most popular stock in this table. On the other hand LCNB Corp. (NASDAQ:LCNB) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks GNC Holdings Inc (NYSE:GNC) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GNC wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GNC were disappointed as the stock returned -45.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Clean Energy Fuels Corp (CLNE) Insider Monkey has processed numerous 13F filings of hedge funds and successful investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Clean Energy Fuels Corp (NASDAQ:CLNE) based on that data. IsClean Energy Fuels Corp (NASDAQ:CLNE)ready to rally soon? Hedge funds are getting more bullish. The number of bullish hedge fund positions improved by 3 in recent months. Our calculations also showed that clne isn't among the30 most popular stocks among hedge funds.CLNEwas in 11 hedge funds' portfolios at the end of March. There were 8 hedge funds in our database with CLNE positions at the end of the previous quarter. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. [caption id="attachment_30621" align="aligncenter" width="487"] Cliff Asness of AQR Capital Management[/caption] Let's take a peek at the recent hedge fund action regarding Clean Energy Fuels Corp (NASDAQ:CLNE). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 38% from the previous quarter. On the other hand, there were a total of 7 hedge funds with a bullish position in CLNE a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to Insider Monkey's hedge fund database,Renaissance Technologies, managed by Jim Simons, holds the biggest position in Clean Energy Fuels Corp (NASDAQ:CLNE). Renaissance Technologies has a $25.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second isMillennium Management, led by Israel Englander, holding a $2.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that hold long positions encompass D. E. Shaw'sD E Shaw, Ken Griffin'sCitadel Investment Groupand Cliff Asness'sAQR Capital Management. Now, key money managers were breaking ground themselves.BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, established the most outsized position in Clean Energy Fuels Corp (NASDAQ:CLNE). BlueCrest Capital Mgmt. had $0.2 million invested in the company at the end of the quarter. David Harding'sWinton Capital Managementalso made a $0.1 million investment in the stock during the quarter. The following funds were also among the new CLNE investors: Andrew Weiss'sWeiss Asset Managementand Jeffrey Talpins'sElement Capital Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Clean Energy Fuels Corp (NASDAQ:CLNE) but similarly valued. We will take a look at i3 Verticals, Inc. (NASDAQ:IIIV), IRSA Inversiones y Representaciones Sociedad Anónima (NYSE:IRS), Gladstone Commercial Corporation (NASDAQ:GOOD), and Crossamerica Partners LP (NYSE:CAPL). This group of stocks' market valuations are closest to CLNE's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position IIIV,8,66259,0 IRS,8,48594,1 GOOD,6,61639,-1 CAPL,4,6518,4 Average,6.5,45753,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $32 million in CLNE's case. i3 Verticals, Inc. (NASDAQ:IIIV) is the most popular stock in this table. On the other hand Crossamerica Partners LP (NYSE:CAPL) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Clean Energy Fuels Corp (NASDAQ:CLNE) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CLNE wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CLNE were disappointed as the stock returned -15.5% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On G1 Therapeutics, Inc. (GTHX) ? Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors' favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the second quarter. The stats were even worse in recent years when most of the advances in the market were due to large gains by FAANG stocks. However, one bright side for individual investors was the strong performance of hedge funds' top consensus picks. This year hedge funds' top 20 stock picks outperformed the S&P 500 Index by 6.6 percentage points through May 30th. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone. G1 Therapeutics, Inc. (NASDAQ:GTHX)shares haven't seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 11 hedge funds' portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as RadNet Inc. (NASDAQ:RDNT), Sunlands Technology Group (NYSE:STG), and Flushing Financial Corporation (NASDAQ:FFIC) to gather more data points. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to take a look at the latest hedge fund action surrounding G1 Therapeutics, Inc. (NASDAQ:GTHX). 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 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards GTHX over the last 15 quarters. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions). More specifically,RA Capital Managementwas the largest shareholder of G1 Therapeutics, Inc. (NASDAQ:GTHX), with a stake worth $6 million reported as of the end of March. Trailing RA Capital Management was Citadel Investment Group, which amassed a stake valued at $4.6 million. Millennium Management, Baker Bros. Advisors, and Marshall Wace LLP were also very fond of the stock, giving the stock large weights in their portfolios. Because G1 Therapeutics, Inc. (NASDAQ:GTHX) has faced a decline in interest from the aggregate hedge fund industry, it's easy to see that there was a specific group of hedge funds who sold off their positions entirely in the third quarter. At the top of the heap, Bihua Chen'sCormorant Asset Managementcut the biggest stake of the 700 funds watched by Insider Monkey, comprising about $19 million in stock, and Kris Jenner, Gordon Bussard, Graham McPhail's Rock Springs Capital Management was right behind this move, as the fund sold off about $1.9 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now review hedge fund activity in other stocks - not necessarily in the same industry as G1 Therapeutics, Inc. (NASDAQ:GTHX) but similarly valued. We will take a look at RadNet Inc. (NASDAQ:RDNT), Sunlands Technology Group (NYSE:STG), Flushing Financial Corporation (NASDAQ:FFIC), and Merchants Bancorp (NASDAQ:MBIN). This group of stocks' market values resemble GTHX's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RDNT,14,84001,0 STG,2,1120,0 FFIC,8,42537,1 MBIN,3,1199,-1 Average,6.75,32214,0 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 6.75 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $20 million in GTHX's case. RadNet Inc. (NASDAQ:RDNT) is the most popular stock in this table. On the other hand Sunlands Technology Group (NYSE:STG) is the least popular one with only 2 bullish hedge fund positions. G1 Therapeutics, Inc. (NASDAQ:GTHX) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on GTHX as the stock returned 58.3% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On Vivint Solar Inc (VSLR) ? A market surge in the first quarter, spurred by easing global macroeconomic concerns and Powell's pivot ended up having a positive impact on the markets and many hedge funds as a result. The stocks of smaller companies which were especially hard hit during the fourth quarter slightly outperformed the market during the first quarter. Unfortunately, Trump is unpredictable and volatility returned in the second quarter and smaller-cap stocks went back to selling off. We finished compiling the latest 13F filings to get an idea about what hedge funds are thinking about the overall market as well as individual stocks. In this article we will study the hedge fund sentiment to see how those concerns affected their ownership of Vivint Solar Inc (NYSE:VSLR) during the quarter. Vivint Solar Inc (NYSE:VSLR)investors should pay attention to a decrease in support from the world's most elite money managers in recent months. Our calculations also showed that VSLR isn't among the30 most popular stocks among hedge funds. If you'd ask most traders, hedge funds are assumed to be worthless, old financial tools of the past. While there are over 8000 funds trading at present, Our experts choose to focus on the crème de la crème of this group, about 750 funds. Most estimates calculate that this group of people administer the majority of all hedge funds' total capital, and by paying attention to their finest picks, Insider Monkey has come up with many investment strategies that have historically beaten the S&P 500 index. Insider Monkey's flagship hedge fund strategy exceeded the S&P 500 index by around 5 percentage points per year since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). Let's take a peek at the fresh hedge fund action encompassing Vivint Solar Inc (NYSE:VSLR). Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -31% from one quarter earlier. By comparison, 6 hedge funds held shares or bullish call options in VSLR a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Arosa Capital Managementwas the largest shareholder of Vivint Solar Inc (NYSE:VSLR), with a stake worth $9.8 million reported as of the end of March. Trailing Arosa Capital Management was Point72 Asset Management, which amassed a stake valued at $9.1 million. D E Shaw, Arrowstreet Capital, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios. Because Vivint Solar Inc (NYSE:VSLR) has witnessed bearish sentiment from the aggregate hedge fund industry, it's easy to see that there lies a certain "tier" of funds that elected to cut their positions entirely in the third quarter. Intriguingly, Jonathan Barrett and Paul Segal'sLuminus Managementsold off the largest position of the 700 funds tracked by Insider Monkey, comprising an estimated $5.7 million in stock, and Daniel Arbess's Perella Weinberg Partners was right behind this move, as the fund dropped about $1.3 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 5 funds in the third quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Vivint Solar Inc (NYSE:VSLR) but similarly valued. We will take a look at Unisys Corporation (NYSE:UIS), CEVA, Inc. (NASDAQ:CEVA), Retail Value Inc. (NYSE:RVI), and Aurinia Pharmaceuticals Inc (NASDAQ:AUPH). This group of stocks' market caps are closest to VSLR's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UIS,19,77897,2 CEVA,10,30237,0 RVI,17,168765,4 AUPH,13,88651,5 Average,14.75,91388,2.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $91 million. That figure was $23 million in VSLR's case. Unisys Corporation (NYSE:UIS) is the most popular stock in this table. On the other hand CEVA, Inc. (NASDAQ:CEVA) is the least popular one with only 10 bullish hedge fund positions. Vivint Solar Inc (NYSE:VSLR) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on VSLR as the stock returned 50.7% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Here’s What Hedge Funds Think About Innophos Holdings, Inc. (IPHS) We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Innophos Holdings, Inc. (NASDAQ:IPHS) based on that data. Innophos Holdings, Inc. (NASDAQ:IPHS)shareholders have witnessed a decrease in support from the world's most elite money managers of late. Our calculations also showed that IPHS isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. We're going to take a look at the new hedge fund action encompassing Innophos Holdings, Inc. (NASDAQ:IPHS). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from the fourth quarter of 2018. By comparison, 13 hedge funds held shares or bullish call options in IPHS a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Innophos Holdings, Inc. (NASDAQ:IPHS), with a stake worth $22.8 million reported as of the end of March. Trailing Renaissance Technologies was Arrowstreet Capital, which amassed a stake valued at $5.6 million. Millennium Management, D E Shaw, and Citadel Investment Group were also very fond of the stock, giving the stock large weights in their portfolios. Due to the fact that Innophos Holdings, Inc. (NASDAQ:IPHS) has witnessed declining sentiment from the entirety of the hedge funds we track, it's safe to say that there exists a select few fund managers who were dropping their entire stakes in the third quarter. It's worth mentioning that Paul Marshall and Ian Wace'sMarshall Wace LLPsold off the largest stake of the "upper crust" of funds tracked by Insider Monkey, worth close to $1.3 million in stock. Peter Muller's fund,PDT Partners, also dumped its stock, about $0.4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in the third quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Innophos Holdings, Inc. (NASDAQ:IPHS) but similarly valued. These stocks are Speedway Motorsports, Inc. (NYSE:TRK), Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), Costamare Inc (NYSE:CMRE), and Dorchester Minerals LP (NASDAQ:DMLP). This group of stocks' market valuations resemble IPHS's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRK,9,10429,-2 LXRX,12,8733,1 CMRE,9,16990,-1 DMLP,6,34031,0 Average,9,17546,-0.5 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $45 million in IPHS's case. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is the most popular stock in this table. On the other hand Dorchester Minerals LP (NASDAQ:DMLP) is the least popular one with only 6 bullish hedge fund positions. Innophos Holdings, Inc. (NASDAQ:IPHS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately IPHS wasn't nearly as popular as these 20 stocks and hedge funds that were betting on IPHS were disappointed as the stock returned -7.3% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Don't Sell SSY Group Limited (HKG:2005) Before You Read This Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). We'll apply a basic P/E ratio analysis to SSY Group Limited's (HKG:2005), to help you decide if the stock is worth further research.What is SSY Group's P/E ratio?Well, based on the last twelve months it is 23.19. That means that at current prices, buyers pay HK$23.19 for every HK$1 in trailing yearly profits. Check out our latest analysis for SSY Group Theformula for price to earningsis: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for SSY Group: P/E of 23.19 = HK$7.06 ÷ HK$0.30 (Based on the year to December 2018.) A higher P/E ratio means that buyers have to paya higher pricefor each HK$1 the company has earned over the last year. That isn't a good or a bad thing on its own, but a high P/E means that buyers have a higher opinion of the business's prospects, relative to stocks with a lower P/E. Probably the most important factor in determining what P/E a company trades on is the earnings growth. Earnings growth means that in the future the 'E' will be higher. That means even if the current P/E is high, it will reduce over time if the share price stays flat. A lower P/E should indicate the stock is cheap relative to others -- and that may attract buyers. Notably, SSY Group grew EPS by a whopping 30% in the last year. And earnings per share have improved by 19% annually, over the last five years. So we'd generally expect it to have a relatively high P/E ratio. We can get an indication of market expectations by looking at the P/E ratio. The image below shows that SSY Group has a higher P/E than the average (12.8) P/E for companies in the pharmaceuticals industry. That means that the market expects SSY Group will outperform other companies in its industry. The market is optimistic about the future, but that doesn't guarantee future growth. So investors should always consider the P/E ratio alongside other factors, such aswhether company directors have been buying shares. The 'Price' in P/E reflects the market capitalization of the company. In other words, it does not consider any debt or cash that the company may have on the balance sheet. Theoretically, a business can improve its earnings (and produce a lower P/E in the future) by investing in growth. That means taking on debt (or spending its cash). Such expenditure might be good or bad, in the long term, but the point here is that the balance sheet is not reflected by this ratio. SSY Group has net debt worth just 2.5% of its market capitalization. It would probably trade on a higher P/E ratio if it had a lot of cash, but I doubt it is having a big impact. SSY Group has a P/E of 23.2. That's higher than the average in the HK market, which is 10.9. Its debt levels do not imperil its balance sheet and its EPS growth is very healthy indeed. So on this analysis a high P/E ratio seems reasonable. When the market is wrong about a stock, it gives savvy investors an opportunity. As value investor Benjamin Graham famously said, 'In the short run, the market is a voting machine but in the long run, it is a weighing machine.' So thisfreevisual report on analyst forecastscould hold the key to an excellent investment decision. Of courseyou might be able to find a better stock than SSY Group. So you may wish to see thisfreecollection of other companies that have grown earnings strongly. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Kamala Harris Is Surging and Birtherism Is Back Photo Illustration by The Daily Beast/Getty Kamala Harris broke out from the other nine Democrats onstage during the second Democratic presidential primary debate on Thursday, calling on her personal experiences of racial injustice as a black woman. As the only black person on this stage, I would like to speak on the issue of race, Harris said. Thats when she was attacked on Twitter by a conservative provocateur for not being an American black. Its a play straight out of the racist birther playbook used against Barack Obama when he ran for president a decade earlier. This time, though, those kinds of allegations dont have to circulate for years on obscure right-wing forums before they reach a mainstream audience. On Thursday night, spammers and even one of President Trumps sons spread the attack to millions of people within hours. Kamala Harris Shows Shes Here to Capture the Crown Harris, 54, was born in Oakland, California to a father from Jamaica and a mother from India. She spoke of her experience growing up black in the debate, recalling a story about neighbors who wouldnt let their children play with Harris and her sister because of the color of their skin. The attacks on Harriss background started Thursday when Ali Alexander tweeted she is not an American black. She is half Indian and half Jamaican, Alexander wrote. I'm so sick of people robbing American Blacks (like myself) of our history. It's disgusting. Now using it for debate time at #DemDebate2? These are my people not her people. Freaking disgusting. Alexanders claim was picked up by Donald Trump Jr., who tweeted it to his nearly 3.6 million followers. Is this true? Trump Jr. wrote. Wow. Trump Jr., who later deleted his tweet, wasnt the only one using Alexanders tweet to question Harriss ethnicity. Harriss team denounced the comment as racist. This is the same type of racist attacks his father used to attack Barack Obama. It didnt work then and it wont work now, a Harris spokesperson told The Daily Beast. Story continues More Twitter users copied and pasted Alexanders message verbatim and tweeted it as their own, according to screenshots posted by writer Caroline Orr. Some of those accounts, like @prebs_73, have copy-pasted other popular right-wing tweets verbatim. Other accounts with right-wing references in their usernames and biographies piled on, accusing Harris of not being black. Ummmmm @KamalaHarris you are NOT BLACK. you are Indian and Jamaican, wrote a Twitter user with a cross emoji, the word CONSERVATIVE, a red X emoji (a right-wing Twitter trope ), and three stars ( a QAnon symbol ) in their username. At least one known network of bot accounts was found spreading Alexanders original tweet, BuzzFeed reported . Shireen Mitchell, a technologist and founder of the group Stop Online Violence Against Women, said the accusation against Harris plays into a long-running debate that has been used to drive a white nationalist wedge through black communities. We are and have always been, for centuries in this country, having this little fight about who gets opportunities as black people and who doesnt, Mitchell said. That includes colorism; that includes distinctions of where the ship actually landed; it includes if you are (and I am) a descendant of a slave who was born here versus a descendant of slavery from another country. Those distinctions, from my perspective, make no sense ever. But what it does is allow for white nationalist and nativist conversations to be planted in my community. A spokesman for Trump Jr. said Trump sent the tweet originally because he had not known that Harriss mother was Indian. Dons tweet was simply him asking if its true that Kamala Harris was half-Indian because its not something he had ever heard before and once he saw that folks were misconstruing the intent of his tweet he quickly deleted it, the spokesman said. Alexander, who describes himself as black and Arab, said that Harris has a nasty, lying history with Black people. Me pointing out that Kamala Harris has a mother from India and a father from Jamaica went viral last night because many people assume she descends from Black American Slaves, he said in a statement to The Daily Beast. She does not. I corrected Kamala Harris last night because she stole debate time under the premise that she is an African-American when she is in fact a biracial Indian-Jamaican who is a first generation American. This isnt the first time pro-Trump activists have tried to undermine Harris and her authority to speak on issues of race based on her parents. In January, right-wing operative Jacob Wohl, an associate of Alexander, argued on Twitter that Harris was ineligible to be president because her parents werent from the United States, even though she was born in California. Wohls claims were circulated by other right-wing figures online, in an attempt to create a birther-style question about whether Harris could legally run for president. Mitchell, who has monitored harassment campaigns against black women since 2013, said Harris is facing a new, digital permutation of the birther conspiracy theory attacks President Trump levied against Obama. Its a different iteration of birtherism: where were you born? She was born in Oakland! Mitchell said, referring to the conspiracy theory that falsely accused Obama of being born outside the U.S. The conversation is, no matter who we are, our blackness should be challenged because what we look like is not American enough. Mitchell draws a distinction between two kinds of fraudulent accounts that try to discredit black people online. Botnets, an automated network of fake accounts, often tweet the same message. The technique allows a message to spread far and fast, with little effort. Some of the copy-paste accounts sharing Alexanders message appear to be operated by real people. Mitchell also monitors a trend called marionetting, in which someone will falsely pose as a black person online to push ideas that many black people might otherwise find objectionable. Recent examples of marionetting include a troll who stole a black transgender activists picture to pose as a Trump supporter, and Russian-run accounts like Blacktivist that impersonated black Americans to sway black voters away from Hillary Clinton in 2016. I actually thought the botnet was going to die, because I felt like more marionetting was happening ... After this debate, I saw more botnets responding again, versus just marionetting. Fraudulent accounts often rely on stereotypes that trolls hope to apply to a collection of fake accounts, Mitchell said. The black enough line has been a stereotypical frame, she said. It has always been a systemic narrative. Its just being expanded in this national debate Digital Blackface: Pro-Trump Trolls Are Impersonating Black People on Twitter Read more at The Daily Beast. Get our top stories in your inbox every day. Sign up now! Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.
Rising Soundcloud Artist Hella Sketchy Dies at 18: 'We Promise Your Legacy Will Live on Forever' Rapper Hella Sketchy died this week after suffering a drug overdose and subsequently falling into a coma. He was 18. Born Jacob Tyler Thureson, the musician died early in the morning of June 27, his dad, Erik Thureson, confirmed on Twitter Thursday. According to Erik, Jacob was found unresponsive on June 13th from an apparent drug overdose before being taken to the emergency room, where he was in a coma for 14 days. “Never in a million years would I have imagined that it would end like this,” Erik said in a series of tweets . He then urged his son’s fans to recognize the impact of the opioid crisis across the United States. “The opioid epidemic does not discriminate,” he said. “The conversation regarding drugs, depression, mental illness, social media, needs to be happening more openly without judgment and stigma.” “Jacob’s life was not and will not be in vain,” Erik continued, noting how many people his son touched in his short life. “Jacob touched many lives. He had so many praying. There was unity from people of all backgrounds with 1 hope for Jacob to pull through. We don’t understand why but we do know that no matter what God is still good & we praise him.” Part 1 #ripsketchy #ripjacob #riplittlebuddy You are not supposed to go before your father or grandfather. That’s not supposed to happen. That’s not how this works. We have no words. We are so sad to share that Jacob Tyler Thureson passed away on June 27,2019 at 5:11 am pic.twitter.com/r1cD28J7Ps — Erik Thureson #filmcrew (@erikthureson) June 27, 2019 Part 2 #ripsketchy #ripjacob #riplittlebuddy Jacob was found unresponsive on June 13th from an apparent drug overdose. He was revived and brought to the ER where he’s been in a coma for 14 days. Never in a million years would I have imagined that it would end like this. pic.twitter.com/1Y1tFs1SO3 — Erik Thureson #filmcrew (@erikthureson) June 27, 2019 RELATED: Accused Nipsey Hussle Murder Getaway Car Driver Offered Police Protection Amid Death Threats “We love you Jacob. More than words can express. We honor your short life of 18 years but we promise, your legacy will live on forever,” he concluded. Story continues A Go Fund Me campaign has been set up to help the family pay for the medical bills from the rapper’s two weeks in the hospital. As of Friday, more than $11,000 had been raised, with a $100,000 goal. Members of the music industry also expressed their grief upon learning of musician’s death. Part 3 #ripsketchy #ripjacob #riplittlebuddy The opioid epidemic does not discriminate. The conversation regarding drugs, depression, mental illness, social media, needs to be happening more openly without judgment and stigma. Jacob’s life was not and will not be in vain. pic.twitter.com/yy3Q6sbhtO — Erik Thureson #filmcrew (@erikthureson) June 27, 2019 Part 4 #ripsketchy #ripjacob #riplittlebuddy Jacob touched many lives. He had so many praying. There was unity from people of all backgrounds with 1 hope for Jacob to pull through. We don’t understand why but we do know that no matter what God is still good & we praise him. pic.twitter.com/caSc2JbrVl — Erik Thureson #filmcrew (@erikthureson) June 27, 2019 Part 5 #ripsketchy #ripjacob #riplittlebuddy We love you Jacob. More than words can express. We honor your short life of 18 years but we promise, your legacy will live on forever. pic.twitter.com/yjkfZkwOUT — Erik Thureson #filmcrew (@erikthureson) June 27, 2019 RELATED: Lady Gaga Dresses Head-to-Toe in Rainbow While Honoring 50th Anniversary of Stonewall Riots “The tragic passing of Hella Sketchy is a devastating loss. He was an enormously creative, sensitive soul with a brilliant sense of humor,” APG/Atlantic Records said in a statement. “He was just beginning to show the world his talent and originality, and it’s heartbreaking that such a bright future has been cut short. Everyone at APG and Atlantic sends our deepest condolence to his family, friends and fans.” Jacob Tyler Thureson aka Hella Sketchy \| Hella Sketchy/Instagram “Rip @hellasketchers u were young as s— man what the f—” tweeted one of his collaborators, Rico Nasty. Jacob rose to popularity as Hella Sketchy on Soundcloud , where he has more than 22,000 followers. He released his debut album, titled Hella Sketchy , earlier this year. If you or someone you know is in need of help, please contact the SAMHSA substance abuse helpline at 1-800-662-HELP.
Conviction comes after DNA, family tree crack 1987 killings EVERETT, Wash. (AP) — A jury convicted a Washington state man Friday in the killings of a young Canadian couple more than three decades ago — a case that was finally solved when investigators turned to powerful genealogy software to build a family tree of the then-unknown suspect. Tanya Van Cuylenborg, 18, and her 20-year-old boyfriend, Jay Cook, disappeared in November 1987 after leaving their home near Victoria, British Columbia, for what was supposed to be an overnight trip to Seattle. Their bodies were found in separate locations in northwestern Washington state about a week later. Investigators preserved DNA evidence that was recovered from Van Cuylenborg's body and pants, but they didn't know whose it was until last year. Authorities used genetic genealogy to identify the suspect as William Earl Talbott II, a construction worker and truck driver who was 24 at the time of the killings and lived near where Cook's body was discovered. The genealogy technique has revolutionized cold-case investigations across the U.S. in the past year. It involves entering crime-scene DNA profiles into public genealogy databases, finding relatives of the person who left the DNA and building family trees that lead detectives to a suspect. Talbott did not testify during the trial in Snohomish County Superior Court, and the jury rejected the suggestion from his lawyers that he had sex with Van Cuylenborg but did not kill her or her boyfriend. It's still unknown how Talbott encountered the pair and what happened during their final days. "It's been such a long wait for all of us," John Van Cuylenborg, Tanya's older brother, said after the verdict in a video posted by The Daily Herald newspaper . "It feels great to have some answers. We don't have all the answers, but we have a lot more than we had for 31 years." When the couple didn't return from their trip as scheduled, their families began a frantic search for them, including renting a plane to try to spot the copper-colored Ford van they had been driving. Story continues About a week later, Van Cuylenborg's body was found down an embankment in a rural area north of Seattle. She had been shot in the back of the head. Hunters found Cook dead two days later in brush near a bridge over the Snoqualmie River — about 60 miles (95 kilometers) from where his girlfriend was discovered. He had been beaten with rocks and strangled with twine and two red dog collars, authorities said. Talbott flinched and gasped when the jury read its verdict, then was pushed out of the courtroom in a wheelchair, the newspaper reported. He is one of dozens of suspects authorities have arrested in old cases over the past year through the genetic genealogy, including a California man charged in the Golden State Killer case. The serial attacker killed 13 people and raped nearly 50 women during the 1970s and 1980s. In Talbott's case, a genetic genealogist used a DNA profile entered into the GEDmatch database to identify distant cousins of the suspect, build a family tree linking those cousins and figure out that the sample must have come from a male child of William and Patricia Talbott. The couple had only one son: William Talbott II. Once Talbott was identified as a suspect, investigators tailed him, saw him discard a coffee cup and then tested the DNA from the cup, confirming it matched evidence from the crime, prosecutor Justin Harleman told jurors during the trial. "The use of GEDmatch — I hope more and more people will be willing to allow their DNA on these sites so that this world can be safer," said Cook's sister, Laura Baanstra. ___ This story has been corrected to show Talbott's name was misspelled on second reference.
3 Reasons Facebook Can Monetize Stories Faster and Better Than Snap Instagram launched its Stories product in August of 2016, andSnap(NYSE: SNAP)felt the impact almost immediately. Snap saw a meaningfuldrop in Snapchat user growthin the months following Instagram Stories' launch, and that showed up in the company's IPO filing. But not only did theFacebook(NASDAQ: FB)subsidiary slow Snapchat's user growth, it's also put a damper on its ability to grow its revenue. That's because Facebook is doing to Snapchat Stories advertising the exact same thing it did to its user growth. It's taking advantage of its built-in advertiser base to draw in demand for the platform, and Facebook can use its scale to improve monetization at a faster rate than Snap. Here are three reasons Facebook can monetize Stories faster and better than Snap. Image source: Facebook. Facebook's biggest advantage over new entrants in digital advertising is that it's already used by so many advertisers already. Inertia is powerful. At last count, Facebook had 7 million active advertisers across its ecosystem of apps. It's already managed to get 3 million of those advertisers to use Stories ads. What's more, its adoption is moving quickly. It added 1 million new active Stories advertisers in the first quarter. By comparison, Snap hasstruggled to growthe number of active advertisers on its platform. It doesn't disclose an active advertiser count, but just one-third the number of marketers even use the platform compared to Facebook, according to an estimate from eMarketer. An even smaller percentage might buy ads. Facebook is able to leverage its 7 million active advertisers across its services to grow ads in Stories because it's simply adding another option to its ad-buying tool. CFO Dave Wehner told analysts, "We're proactively bringing more advertisers to Stories through the ads manager tool" by using placement optimization. Advertisers are also naturally flocking to the format because it can offer good value considering therelatively low priceper impression compared to feed ads. More demand gives Facebook room to increase supply, pricing, or both, leading to better monetization. Each of Facebook's three Stories products -- Instagram Stories, Facebook Stories, and WhatsApp Status -- have over 500 million daily active users. Facebook surpassed1 billion total unique daily userslate last year. By comparison, Snapchat has 190 million daily active users, and not all of them use Stories. Facebook's scale gives it two advantages. First, the bigger audience is more attractive to advertisers. But more importantly, the greater scale gives Facebook the opportunity to test more things than Snap. Combined with its strong demand for advertising, Facebook can quickly determine optimal ad loads for Stories, which may be very different from advertising in feeds. Facebook's ability to experiment with ad loads and formats will ultimately result in faster growth compared to Snap. The overarching attraction of Facebook over the competition is its ability to offer better targeting capabilities. Facebook's able to utilize user data from across its family of apps. Additionally, Facebook's ubiquity means that it's often integrated into third-party publishers' websites, from which it gets additional data. Facebook's trove of data enables it to surface more relevant ads compared to Snap. More relevant ads get clicks, and clicks make sales. As a result, Facebook is likely to attract more advertisers to its platform since they're better able to find their potential customers. Snap is making an effort to improve its direct response ad products aimed at smaller companies. Meanwhile, Facebook management warned during its first-quarter earnings call that the pre-emptive privacy changes it's making will negatively impact its targeting capabilities. Overall, the gap between Facebook and pretty much everyone else remains substantial. Investors might look at Snap's financials and see it's generated nearly $1.3 billion in revenue over the last four quarters. Importantly, Snap generates revenue from other sources outside of Stories. Still, considering Facebook has around five times as many active users across its Stories products, investors might assume it could be making around $6.5 billion when fully monetized. But Facebook should be able to generate a lot more than that from Stories due to its greater number of advertisers, ability to experiment with higher-value ads or more ads per minute, and superior ad relevance. While Mark Zuckerberg told analysts feed ads will remain the main revenue driver for the next couple years, it's easy to see the massive potential for Stories ads on Facebook, especially when you compare it to Snap. Keep in mind that WhatsApp Status still doesn't have any advertisements, and the company didn't start monetizing Facebook Stories until September of last year. There's still a long way for Facebook to go, and it's going to ramp up quickly. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors.Adam Levyowns shares of Facebook. The Motley Fool owns shares of and recommends Facebook. The Motley Fool has adisclosure policy.
Does The O-Net Technologies (Group) Limited (HKG:877) Share Price Tend To Follow The Market? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Anyone researching O-Net Technologies (Group) Limited ( HKG:877 ) might want to consider the historical volatility of the share price. Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. The first type is company specific volatility. Investors use diversification across uncorrelated stocks to reduce this kind of price volatility across the portfolio. The other type, which cannot be diversified away, is the volatility of the entire market. Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. Some stocks are more sensitive to general market forces than others. Beta is a widely used metric to measure a stock's exposure to market risk (volatility). Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful. The first thing to understand about beta is that the beta of the overall market is one. Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market. Check out our latest analysis for O-Net Technologies (Group) What we can learn from 877's beta value Zooming in on O-Net Technologies (Group), we see it has a five year beta of 1.74. This is above 1, so historically its share price has been influenced by the broader volatility of the stock market. Based on this history, investors should be aware that O-Net Technologies (Group) are likely to rise strongly in times of greed, but sell off in times of fear. Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see O-Net Technologies (Group)'s revenue and earnings in the image below. Story continues SEHK:877 Income Statement, June 29th 2019 Does 877's size influence the expected beta? O-Net Technologies (Group) is a noticeably small company, with a market capitalisation of HK$3.4b. Most companies this size are not always actively traded. It has a relatively high beta, suggesting it is fairly actively traded for a company of its size. Because it takes less capital to move the share price of a small company like this, when a stock this size is actively traded it is quite often more sensitive to market volatility than similar large companies. What this means for you: Since O-Net Technologies (Group) tends to moves up when the market is going up, and down when it's going down, potential investors may wish to reflect on the overall market, when considering the stock. This article aims to educate investors about beta values, but it's well worth looking at important company-specific fundamentals such as O-Net Technologies (Group)’s financial health and performance track record. I highly recommend you dive deeper by considering the following: Future Outlook : What are well-informed industry analysts predicting for 877’s future growth? Take a look at our free research report of analyst consensus for 877’s outlook. Past Track Record : Has 877 been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of 877's historicals for more clarity. Other Interesting Stocks : It's worth checking to see how 877 measures up against other companies on valuation. You could start with this free list of prospective options . We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Pixelworks, Inc. (PXLW) A Good Stock To Buy ? Hedge funds are known to underperform the bull markets but that's not because they are terrible at stock picking. Hedge funds underperform because their net exposure in only 40-70% and they charge exorbitant fees. No one knows what the future holds and how market participants will react to the bountiful news that floods in each day. However, hedge funds' consensus picks on average deliver market beating returns. For example in the first 5 months of this year through May 30th the Standard and Poor’s 500 Index returned approximately 12.1% (including dividend payments). Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 18.7% during the same 5-month period, with the majority of these stock picks outperforming the broader market benchmark. Interestingly, an average long/short hedge fund returned only a fraction of this value due to the hedges they implemented and the large fees they charged. If you pay attention to the actual hedge fund returns versus the returns of their long stock picks, you might believe that it is a waste of time to analyze hedge funds' purchases. We know better. That's why we scrutinize hedge fund sentiment before we invest in a stock like Pixelworks, Inc. (NASDAQ:PXLW). Pixelworks, Inc. (NASDAQ:PXLW)has experienced an increase in support from the world's most elite money managers lately. Our calculations also showed that PXLW isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's take a glance at the new hedge fund action encompassing Pixelworks, Inc. (NASDAQ:PXLW). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22% from one quarter earlier. By comparison, 11 hedge funds held shares or bullish call options in PXLW a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in Pixelworks, Inc. (NASDAQ:PXLW), which was worth $1.5 million at the end of the first quarter. On the second spot was Millennium Management which amassed $1.1 million worth of shares. Moreover, Citadel Investment Group, Arrowstreet Capital, and Two Sigma Advisors were also bullish on Pixelworks, Inc. (NASDAQ:PXLW), allocating a large percentage of their portfolios to this stock. As one would reasonably expect, specific money managers were leading the bulls' herd.Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the largest position in Pixelworks, Inc. (NASDAQ:PXLW). Arrowstreet Capital had $0.3 million invested in the company at the end of the quarter. Michael Gelband'sExodusPoint Capitalalso made a $0.1 million investment in the stock during the quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Pixelworks, Inc. (NASDAQ:PXLW) but similarly valued. These stocks are Natural Health Trends Corp. (NASDAQ:NHTC), Allena Pharmaceuticals, Inc. (NASDAQ:ALNA), Quintana Energy Services Inc. (NYSE:QES), and First Community Corporation (NASDAQ:FCCO). This group of stocks' market valuations match PXLW's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NHTC,12,22918,3 ALNA,5,37096,0 QES,2,14253,0 FCCO,3,11917,0 Average,5.5,21546,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $4 million in PXLW's case. Natural Health Trends Corp. (NASDAQ:NHTC) is the most popular stock in this table. On the other hand Quintana Energy Services Inc. (NYSE:QES) is the least popular one with only 2 bullish hedge fund positions. Pixelworks, Inc. (NASDAQ:PXLW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately PXLW wasn't nearly as popular as these 20 stocks and hedge funds that were betting on PXLW were disappointed as the stock returned -25% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Impinj, Inc. (PI) 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 the30 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). 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'sSylebra Capital Managementhas 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 isD 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'sMillennium Management, Ken Griffin'sCitadel Investment Groupand Chet Kapoor'sTenzing Global Investors. As one would reasonably expect, some big names were breaking ground themselves.Tenzing Global Investors, managed by Chet Kapoor, assembled the largest position in Impinj, Inc. (NASDAQ:PI). Tenzing Global Investors had $1.7 million invested in the company at the end of the quarter. Josh Goldberg'sG2 Investment Partners Managementalso made a $0.5 million investment in the stock during the quarter. The following funds were also among the new PI investors: Peter Muller'sPDT Partners, Paul Tudor Jones'sTudor Investment Corp, and Andrew Feldstein and Stephen Siderow'sBlue Mountain Capital. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Impinj, Inc. (NASDAQ:PI) but similarly valued. These stocks are Corindus Vascular Robotics Inc (NYSE:CVRS), Titan International Inc (NYSE:TWI), Landec Corporation (NASDAQ:LNDC), and The Cato Corporation (NYSE:CATO). This group of stocks' market values match PI's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CVRS,8,82606,1 TWI,13,82072,5 LNDC,8,49195,1 CATO,12,35413,-3 Average,10.25,62322,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $91 million in PI's case. Titan International Inc (NYSE:TWI) is the most popular stock in this table. On the other hand Corindus Vascular Robotics Inc (NYSE:CVRS) is the least popular one with only 8 bullish hedge fund positions. Impinj, Inc. (NASDAQ:PI) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on PI as the stock returned 61.4% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Unifi, Inc. (UFI) A Good Stock To Buy ? Investing in small cap stocks has historically been a way to outperform the market, as small cap companies typically grow faster on average than the blue chips. That outperformance comes with a price, however, as there are occasional periods of higher volatility. The last 8 months is one of those periods, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by nearly 9 percentage points. Given that the funds we track tend to have a disproportionate amount of their portfolios in smaller cap stocks, they have seen some volatility in their portfolios too. Actually their moves are potentially one of the factors that contributed to this volatility. In this article, we use our extensive database of hedge fund holdings to find out what the smart money thinks of Unifi, Inc. (NYSE:UFI). Unifi, Inc. (NYSE:UFI)has experienced an increase in enthusiasm from smart money of late. Our calculations also showed that UFI isn't among the30 most popular stocks among hedge funds. Today there are dozens of formulas shareholders use to size up their stock investments. A duo of the less known formulas are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat their index-focused peers by a very impressive margin (see the details here). We're going to go over the recent hedge fund action encompassing Unifi, Inc. (NYSE:UFI). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the fourth quarter of 2018. On the other hand, there were a total of 9 hedge funds with a bullish position in UFI a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Unifi, Inc. (NYSE:UFI) was held byImpala Asset Management, which reported holding $30.6 million worth of stock at the end of March. It was followed by ValueAct Capital with a $21.9 million position. Other investors bullish on the company included Royce & Associates, D E Shaw, and Citadel Investment Group. Consequently, key hedge funds were leading the bulls' herd.Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in Unifi, Inc. (NYSE:UFI). Citadel Investment Group had $1 million invested in the company at the end of the quarter. Charles Davidson and Joseph Jacobs'sWexford Capitalalso made a $0.2 million investment in the stock during the quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Unifi, Inc. (NYSE:UFI) but similarly valued. These stocks are Fiesta Restaurant Group Inc (NASDAQ:FRGI), Motorcar Parts of America, Inc. (NASDAQ:MPAA), NI Holdings, Inc. (NASDAQ:NODK), and Karyopharm Therapeutics Inc (NASDAQ:KPTI). This group of stocks' market caps are closest to UFI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FRGI,18,94240,-2 MPAA,9,93844,-1 NODK,6,24094,-1 KPTI,15,103954,-2 Average,12,79033,-1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $69 million in UFI's case. Fiesta Restaurant Group Inc (NASDAQ:FRGI) is the most popular stock in this table. On the other hand NI Holdings, Inc. (NASDAQ:NODK) is the least popular one with only 6 bullish hedge fund positions. Unifi, Inc. (NYSE:UFI) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately UFI wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); UFI investors were disappointed as the stock returned -7.6% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Gulf Island Fabrication, Inc. (GIFI) A Good Stock To Buy? Hedge fund managers like David Einhorn, Bill Ackman, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Gulf Island Fabrication, Inc. (NASDAQ:GIFI). Gulf Island Fabrication, Inc. (NASDAQ:GIFI)has experienced an increase in activity from the world's largest hedge funds lately.GIFIwas in 11 hedge funds' portfolios at the end of March. There were 9 hedge funds in our database with GIFI holdings at the end of the previous quarter. Our calculations also showed that GIFI isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. [caption id="attachment_746893" align="aligncenter" width="473"] Paul Marshall of Marshall Wace[/caption] Let's go over the fresh hedge fund action encompassing Gulf Island Fabrication, Inc. (NASDAQ:GIFI). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards GIFI over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. The largest stake in Gulf Island Fabrication, Inc. (NASDAQ:GIFI) was held byKokino LLC, which reported holding $13.8 million worth of stock at the end of March. It was followed by Ariel Investments with a $3.4 million position. Other investors bullish on the company included Royce & Associates, Prescott Group Capital Management, and Ancora Advisors. As aggregate interest increased, some big names were breaking ground themselves.ExodusPoint Capital, managed by Michael Gelband, created the most valuable position in Gulf Island Fabrication, Inc. (NASDAQ:GIFI). ExodusPoint Capital had $0.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace'sMarshall Wace LLPalso made a $0.1 million investment in the stock during the quarter. Let's check out hedge fund activity in other stocks similar to Gulf Island Fabrication, Inc. (NASDAQ:GIFI). These stocks are StealthGas Inc. (NASDAQ:GASS), Intevac, Inc. (NASDAQ:IVAC), StoneCastle Financial Corp (NASDAQ:BANX), and Erytech Pharma S.A. (NASDAQ:ERYP). All of these stocks' market caps are closest to GIFI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GASS,6,54751,0 IVAC,10,23583,4 BANX,1,869,0 ERYP,2,4922,0 Average,4.75,21031,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 4.75 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $27 million in GIFI's case. Intevac, Inc. (NASDAQ:IVAC) is the most popular stock in this table. On the other hand StoneCastle Financial Corp (NASDAQ:BANX) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Gulf Island Fabrication, Inc. (NASDAQ:GIFI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately GIFI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on GIFI were disappointed as the stock returned -19% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Customers Bancorp Inc (CUBI) A Good Stock To Buy ? While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Customers Bancorp Inc (NYSE:CUBI). Customers Bancorp Inc (NYSE:CUBI)was in 13 hedge funds' portfolios at the end of the first quarter of 2019. CUBI investors should pay attention to a decrease in enthusiasm from smart money lately. There were 15 hedge funds in our database with CUBI positions at the end of the previous quarter. Our calculations also showed that CUBI isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Let's analyze the latest hedge fund action regarding Customers Bancorp Inc (NYSE:CUBI). At Q1's end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from the previous quarter. On the other hand, there were a total of 9 hedge funds with a bullish position in CUBI a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Third Avenue Managementwas the largest shareholder of Customers Bancorp Inc (NYSE:CUBI), with a stake worth $11.4 million reported as of the end of March. Trailing Third Avenue Management was GLG Partners, which amassed a stake valued at $7.3 million. Newtyn Management, Renaissance Technologies, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. Because Customers Bancorp Inc (NYSE:CUBI) has witnessed bearish sentiment from hedge fund managers, it's easy to see that there lies a certain "tier" of hedge funds that elected to cut their entire stakes by the end of the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell'sArrowstreet Capitaldumped the largest investment of all the hedgies followed by Insider Monkey, totaling an estimated $0.9 million in stock. Minhua Zhang's fund,Weld Capital Management, also said goodbye to its stock, about $0.4 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter. Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Customers Bancorp Inc (NYSE:CUBI) but similarly valued. These stocks are Pzena Investment Management Inc (NYSE:PZN), One Liberty Properties, Inc. (NYSE:OLP), Puxin Limited (NYSE:NEW), and Nicolet Bankshares Inc. (NASDAQ:NCBS). This group of stocks' market values are similar to CUBI's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PZN,7,16599,2 OLP,4,27437,-1 NEW,2,6163,-2 NCBS,3,4232,0 Average,4,13608,-0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $40 million in CUBI's case. Pzena Investment Management Inc (NYSE:PZN) is the most popular stock in this table. On the other hand Puxin Limited (NYSE:NEW) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Customers Bancorp Inc (NYSE:CUBI) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on CUBI as the stock returned 11.4% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Overstock.com, Inc. (OSTK) A Good Stock To Buy ? Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we pay special attention to the hedge fund activity in the small-cap space. Overstock.com, Inc. (NASDAQ: OSTK ) was in 13 hedge funds' portfolios at the end of March. OSTK shareholders have witnessed an increase in hedge fund sentiment of late. There were 10 hedge funds in our database with OSTK positions at the end of the previous quarter. Our calculations also showed that OSTK isn't among the 30 most popular stocks among hedge funds . In today’s marketplace there are dozens of tools stock traders use to appraise stocks. Two of the most useful tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the top hedge fund managers can trounce the broader indices by a superb amount ( see the details here ). Och-Ziff Capital Management We're going to take a look at the latest hedge fund action regarding Overstock.com, Inc. (NASDAQ: OSTK ). What does smart money think about Overstock.com, Inc. (NASDAQ:OSTK)? At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 30% from one quarter earlier. By comparison, 20 hedge funds held shares or bullish call options in OSTK a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Story continues OSTK_jun2019 When looking at the institutional investors followed by Insider Monkey, North Fourth Asset Management , managed by Anthony Joseph Vaccarino, holds the biggest position in Overstock.com, Inc. (NASDAQ:OSTK). North Fourth Asset Management has a $14.6 million call position in the stock, comprising 3.2% of its 13F portfolio. On North Fourth Asset Management's heels is Citadel Investment Group , managed by Ken Griffin, which holds a $6 million call position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish contain Anthony Joseph Vaccarino's North Fourth Asset Management , and Claes Fornell's CSat Investment Advisory . As aggregate interest increased, key hedge funds have been driving this bullishness. OZ Management , managed by Daniel S. Och, initiated the biggest call position in Overstock.com, Inc. (NASDAQ:OSTK). OZ Management had $0.8 million invested in the company at the end of the quarter. Warren Lammert's Granite Point Capital also initiated a $0.5 million position during the quarter. The following funds were also among the new OSTK investors: Philip Hempleman's Ardsley Partners , Adam Usdan's Trellus Management Company , and Paul Tudor Jones's Tudor Investment Corp . Let's now review hedge fund activity in other stocks similar to Overstock.com, Inc. (NASDAQ:OSTK). We will take a look at Caesarstone Ltd. (NASDAQ: CSTE ), Tredegar Corporation (NYSE: TG ), Fortuna Silver Mines Inc. (NYSE: FSM ), and Lands' End, Inc. (NASDAQ: LE ). All of these stocks' market caps match OSTK's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CSTE,6,20632,0 TG,12,67801,1 FSM,13,42285,-2 LE,14,107631,1 Average,11.25,59587,0 [/table] View table here if you experience formatting issues. As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $60 million. That figure was $20 million in OSTK's case. Lands' End, Inc. (NASDAQ: LE ) is the most popular stock in this table. On the other hand Caesarstone Ltd. (NASDAQ: CSTE ) is the least popular one with only 6 bullish hedge fund positions. Overstock.com, Inc. (NASDAQ:OSTK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately OSTK wasn't nearly as popular as these 20 stocks and hedge funds that were betting on OSTK were disappointed as the stock returned -37.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published at Insider Monkey . Related Content How to Best Use Insider Monkey To Increase Your Returns Billionaire Ken Fisher’s Top Dividend Stock Picks 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Bank of Hawaii Corporation (BOH) A Good Stock To Buy? We at Insider Monkey have gone over 738 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Bank of Hawaii Corporation (NYSE:BOH) based on that data. Bank of Hawaii Corporation (NYSE:BOH)investors should be aware of a decrease in hedge fund interest in recent months. Our calculations also showed that BOH isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. We're going to take a look at the key hedge fund action regarding Bank of Hawaii Corporation (NYSE:BOH). Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -8% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards BOH over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Among these funds,Renaissance Technologiesheld the most valuable stake in Bank of Hawaii Corporation (NYSE:BOH), which was worth $37.1 million at the end of the first quarter. On the second spot was Citadel Investment Group which amassed $24 million worth of shares. Moreover, Royce & Associates, Millennium Management, and Balyasny Asset Management were also bullish on Bank of Hawaii Corporation (NYSE:BOH), allocating a large percentage of their portfolios to this stock. Judging by the fact that Bank of Hawaii Corporation (NYSE:BOH) has faced declining sentiment from hedge fund managers, logic holds that there exists a select few money managers that elected to cut their entire stakes last quarter. At the top of the heap, D. E. Shaw'sD E Shawdropped the biggest investment of all the hedgies tracked by Insider Monkey, comprising close to $0.6 million in stock, and Andrew Feldstein and Stephen Siderow's Blue Mountain Capital was right behind this move, as the fund dropped about $0.1 million worth. These moves are important to note, as aggregate hedge fund interest fell by 1 funds last quarter. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Bank of Hawaii Corporation (NYSE:BOH) but similarly valued. These stocks are Lions Gate Entertainment Corporation (NYSE:LGF-A), American National Insurance Company (NASDAQ:ANAT), NCR Corporation (NYSE:NCR), and Cabot Microelectronics Corporation (NASDAQ:CCMP). This group of stocks' market caps match BOH's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LGF-A,18,315578,-3 ANAT,9,37272,-6 NCR,22,250591,2 CCMP,17,273525,-3 Average,16.5,219242,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $219 million. That figure was $126 million in BOH's case. NCR Corporation (NYSE:NCR) is the most popular stock in this table. On the other hand American National Insurance Company (NASDAQ:ANAT) is the least popular one with only 9 bullish hedge fund positions. Bank of Hawaii Corporation (NYSE:BOH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BOH wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); BOH investors were disappointed as the stock returned 1.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Chesapeake Lodging Trust (CHSP) The first quarter was a breeze as Powell pivoted, and China seemed eager to reach a deal with Trump. Both the S&P 500 and Russell 2000 delivered very strong gains as a result, with the Russell 2000, which is composed of smaller companies, outperforming the large-cap stocks slightly during the first quarter. Unfortunately sentiment shifted in May as this time China pivoted and Trump put more pressure on China by increasing tariffs. Hedge funds' top 20 stock picks performed spectacularly in this volatile environment. These stocks delivered a total gain of 18.7% through May 30th, vs. a gain of 12.1% for the S&P 500 ETF. In this article we will look at how this market volatility affected the sentiment of hedge funds towards Chesapeake Lodging Trust (NYSE:CHSP), and what that likely means for the prospects of the company and its stock. Hedge fund interest inChesapeake Lodging Trust (NYSE:CHSP)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare CHSP to other stocks including Instructure, Inc. (NYSE:INST), Kaiser Aluminum Corp. (NASDAQ:KALU), and The Simply Good Foods Company (NASDAQ:SMPL) to get a better sense of its popularity. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. We're going to go over the recent hedge fund action surrounding Chesapeake Lodging Trust (NYSE:CHSP). At Q1's end, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CHSP over the last 15 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions). Among these funds,Balyasny Asset Managementheld the most valuable stake in Chesapeake Lodging Trust (NYSE:CHSP), which was worth $6.1 million at the end of the first quarter. On the second spot was Citadel Investment Group which amassed $5.7 million worth of shares. Moreover, Marshall Wace LLP, Renaissance Technologies, and Two Sigma Advisors were also bullish on Chesapeake Lodging Trust (NYSE:CHSP), allocating a large percentage of their portfolios to this stock. Due to the fact that Chesapeake Lodging Trust (NYSE:CHSP) has witnessed a decline in interest from the entirety of the hedge funds we track, we can see that there were a few hedgies that decided to sell off their full holdings heading into Q3. It's worth mentioning that D. E. Shaw'sD E Shawcut the biggest position of the "upper crust" of funds tracked by Insider Monkey, valued at an estimated $1 million in stock. David Harding's fund,Winton Capital Management, also dumped its stock, about $0.4 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience). Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Chesapeake Lodging Trust (NYSE:CHSP) but similarly valued. These stocks are Instructure, Inc. (NYSE:INST), Kaiser Aluminum Corp. (NASDAQ:KALU), The Simply Good Foods Company (NASDAQ:SMPL), and Papa John's International, Inc. (NASDAQ:PZZA). This group of stocks' market valuations are closest to CHSP's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position INST,24,454616,2 KALU,19,134499,5 SMPL,22,202596,-3 PZZA,22,361199,-1 Average,21.75,288228,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $288 million. That figure was $23 million in CHSP's case. Instructure, Inc. (NYSE:INST) is the most popular stock in this table. On the other hand Kaiser Aluminum Corp. (NASDAQ:KALU) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Chesapeake Lodging Trust (NYSE:CHSP) is even less popular than KALU. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CHSP, though not to the same extent, as the stock returned 4% during the same time frame and outperformed the market as well. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Apergy Corporation (APY) A Good Stock To Buy ? Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Apergy Corporation (NYSE:APY) changed recently. IsApergy Corporation (NYSE:APY)worth your attention right now? Investors who are in the know are getting less optimistic. The number of bullish hedge fund positions were trimmed by 1 recently. Our calculations also showed that APY isn't among the30 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 check out the key hedge fund action regarding Apergy Corporation (NYSE:APY). Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from the fourth quarter of 2018. By comparison, 0 hedge funds held shares or bullish call options in APY a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to Insider Monkey's hedge fund database, Steven Richman'sEast Side Capital (RR Partners)has the biggest position in Apergy Corporation (NYSE:APY), worth close to $87.7 million, corresponding to 10.4% of its total 13F portfolio. Sitting at the No. 2 spot isEncompass Capital Advisors, managed by Todd J. Kantor, which holds a $16.5 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that hold long positions comprise Ken Griffin'sCitadel Investment Group, D. E. Shaw'sD E Shawand Brandon Haley'sHolocene Advisors. Due to the fact that Apergy Corporation (NYSE:APY) has experienced declining sentiment from the smart money, it's easy to see that there were a few hedgies that slashed their entire stakes last quarter. Intriguingly, David Costen Haley'sHBK Investmentsdumped the biggest stake of the 700 funds tracked by Insider Monkey, valued at an estimated $1.6 million in stock, and Paul Marshall and Ian Wace's Marshall Wace LLP was right behind this move, as the fund dumped about $0.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 funds last quarter. Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Apergy Corporation (NYSE:APY) but similarly valued. We will take a look at Manchester United PLC (NYSE:MANU), RBC Bearings Incorporated (NASDAQ:ROLL), Tempur Sealy International Inc. (NYSE:TPX), and Envestnet Inc (NYSE:ENV). This group of stocks' market values resemble APY's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MANU,11,51988,2 ROLL,11,55043,5 TPX,29,1175502,-2 ENV,17,104260,5 Average,17,346698,2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $347 million. That figure was $126 million in APY's case. Tempur Sealy International Inc. (NYSE:TPX) is the most popular stock in this table. On the other hand Manchester United PLC (NYSE:MANU) is the least popular one with only 11 bullish hedge fund positions. Apergy Corporation (NYSE:APY) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately APY wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); APY investors were disappointed as the stock returned -23.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Blucora Inc (BCOR) A Good Stock To Buy ? Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks. Blucora Inc (NASDAQ:BCOR)has seen an increase in enthusiasm from smart money recently. Our calculations also showed that BCOR isn't among the30 most popular stocks among hedge funds. In today’s marketplace there are a multitude of methods market participants employ to assess their holdings. A duo of the less utilized methods are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the top investment managers can beat the S&P 500 by a very impressive amount (see the details here). [caption id="attachment_746830" align="aligncenter" width="473"] Matthew Hulsizer of PEAK6 Capital[/caption] We're going to take a look at the fresh hedge fund action encompassing Blucora Inc (NASDAQ:BCOR). At Q1's end, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the fourth quarter of 2018. By comparison, 14 hedge funds held shares or bullish call options in BCOR a year ago. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Blucora Inc (NASDAQ:BCOR), with a stake worth $89.4 million reported as of the end of March. Trailing Renaissance Technologies was D E Shaw, which amassed a stake valued at $21 million. Millennium Management, Park West Asset Management, and AQR Capital Management were also very fond of the stock, giving the stock large weights in their portfolios. Now, key money managers have jumped into Blucora Inc (NASDAQ:BCOR) headfirst.Park West Asset Management, managed by Peter S. Park, assembled the most outsized position in Blucora Inc (NASDAQ:BCOR). Park West Asset Management had $10 million invested in the company at the end of the quarter. Matthew Hulsizer'sPEAK6 Capital Managementalso made a $2.3 million investment in the stock during the quarter. The following funds were also among the new BCOR investors: Paul Marshall and Ian Wace'sMarshall Wace LLP, Hoon Kim'sQuantinno Capital, and Dmitry Balyasny'sBalyasny Asset Management. Let's go over hedge fund activity in other stocks similar to Blucora Inc (NASDAQ:BCOR). We will take a look at Opko Health Inc. (NASDAQ:OPK), Dine Brands Global, Inc. (NYSE:DIN), Sunrun Inc (NASDAQ:RUN), and American Axle & Manufacturing Holdings, Inc. (NYSE:AXL). This group of stocks' market valuations are similar to BCOR's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OPK,13,21755,-2 DIN,20,178449,0 RUN,15,305592,-3 AXL,19,126147,-5 Average,16.75,157986,-2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $158 million. That figure was $138 million in BCOR's case. Dine Brands Global, Inc. (NYSE:DIN) is the most popular stock in this table. On the other hand Opko Health Inc. (NASDAQ:OPK) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Blucora Inc (NASDAQ:BCOR) is even less popular than OPK. Hedge funds dodged a bullet by taking a bearish stance towards BCOR. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately BCOR wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); BCOR investors were disappointed as the stock returned -7.3% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Iridium Communications Inc. (IRDM) A Good Stock To Buy ? Is Iridium Communications Inc. (NASDAQ:IRDM) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas. IsIridium Communications Inc. (NASDAQ:IRDM)the right investment to pursue these days? The smart money is taking a pessimistic view. The number of bullish hedge fund positions decreased by 1 in recent months. Our calculations also showed that IRDM isn't among the30 most popular stocks among hedge funds.IRDMwas in 12 hedge funds' portfolios at the end of March. There were 13 hedge funds in our database with IRDM holdings at the end of the previous quarter. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. [caption id="attachment_746830" align="aligncenter" width="473"] Matthew Hulsizer of PEAK6 Capital[/caption] We're going to take a look at the new hedge fund action regarding Iridium Communications Inc. (NASDAQ:IRDM). At the end of the first quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of -8% from one quarter earlier. On the other hand, there were a total of 9 hedge funds with a bullish position in IRDM a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. Of the funds tracked by Insider Monkey, Jim Simons'sRenaissance Technologieshas the number one position in Iridium Communications Inc. (NASDAQ:IRDM), worth close to $75.7 million, amounting to 0.1% of its total 13F portfolio. The second most bullish fund manager isGAMCO Investors, led by Mario Gabelli, holding a $16.5 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining members of the smart money with similar optimism include D. E. Shaw'sD E Shaw, C. Jonathan Gattman'sCloverdale Capital Managementand Chuck Royce'sRoyce & Associates. Due to the fact that Iridium Communications Inc. (NASDAQ:IRDM) has experienced falling interest from the smart money, it's safe to say that there were a few money managers who sold off their full holdings in the third quarter. Intriguingly, Mitch Kuflik and Rob Sobel'sBrahman Capitaldumped the largest investment of all the hedgies tracked by Insider Monkey, totaling an estimated $8.3 million in stock. Israel Englander's fund,Millennium Management, also said goodbye to its stock, about $0.5 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 1 funds in the third quarter. Let's now take a look at hedge fund activity in other stocks similar to Iridium Communications Inc. (NASDAQ:IRDM). We will take a look at Neogen Corporation (NASDAQ:NEOG), Corelogic Inc (NYSE:CLGX), J&J Snack Foods Corp. (NASDAQ:JJSF), and Global Blood Therapeutics Inc (NASDAQ:GBT). This group of stocks' market valuations are closest to IRDM's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NEOG,12,32821,-2 CLGX,17,310733,-2 JJSF,14,95789,4 GBT,26,730224,1 Average,17.25,292392,0.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $292 million. That figure was $140 million in IRDM's case. Global Blood Therapeutics Inc (NASDAQ:GBT) is the most popular stock in this table. On the other hand Neogen Corporation (NASDAQ:NEOG) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Iridium Communications Inc. (NASDAQ:IRDM) is even less popular than NEOG. Hedge funds dodged a bullet by taking a bearish stance towards IRDM. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately IRDM wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); IRDM investors were disappointed as the stock returned -8.9% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Boasting A 15% Return On Equity, Is Longfor Group Holdings Limited (HKG:960) A Top Quality Stock? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Longfor Group Holdings Limited (HKG:960). Longfor Group Holdings has a ROE of 15%, based on the last twelve months. One way to conceptualize this, is that for each HK$1 of shareholders' equity it has, the company made HK$0.15 in profit. Check out our latest analysis for Longfor Group Holdings Theformula for return on equityis: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Longfor Group Holdings: 15% = CN¥16b ÷ CN¥141b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. Shareholders' equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. ROE looks at the amount a company earns relative to the money it has kept within the business. The 'return' is the yearly profit. A higher profit will lead to a higher ROE. So, all else being equal,a high ROE is better than a low one. That means it can be interesting to compare the ROE of different companies. One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, Longfor Group Holdings has a superior ROE than the average (9.1%) company in the Real Estate industry. That's clearly a positive. I usually take a closer look when a company has a better ROE than industry peers. One data point to check is ifinsiders have bought shares recently. Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Longfor Group Holdings has a debt to equity ratio of 0.91, which is far from excessive. Its very respectable ROE, combined with only modest debt, suggests the business is in good shape. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have the same ROE, then I would generally prefer the one with less debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking thisfreereport on analyst forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Navien Secures Leadership Position in Condensing Boiler Category IRVINE, CA / ACCESSWIRE / June 28, 2019 /Known for vastly exceeding governmental efficiency standards, Navien provides premium qualitytankless water heaters,combi-boilersandheating boilers. With a confirmed leadership position in the high efficiency condensing tankless water heater and combi-boiler markets, Navien is excited to announce that, based on 2018 summary reports, Navien condensing wall-hung solo boilers are now the leader in that category as well. Navien has rapidly grown in the North American plumbing and HVAC sector over the past 12 years with their innovative industry-leading efficient technology. On June 28, CEO, Scott Lee, extended his thanks and congratulations to all Navien employees when he said,"Navien's success is built on our culture of teamwork. Each department has performed at peak capacity and all have been pulling together in order to make our continued success flourish. We are committed to making outstanding products and this is proof that the market is recognizing Navien's value." For additional information on Navien Inc., visitNavienInc.com. BRG Enterprise Solutions, Inc. # # # Navien is the recognized leader in industry-efficient condensing technology. The company name is derived from three words: Navigator / Energy / Environment, with a mission to provide customers with the ultimate comfortable living environment through energy efficient products by using innovative technology to create a healthier environment for our future generations. Navien tankless water heaters, combi-boilers and boilers are available in the United States and Canada through a selected network of wholesale distributors. For more information, visitNavienInc.com. Contact: Ann Woodard, Senior Marketing Managerann.woodard@navien.comP: 949-420-0420 x132D: 949-420-0314 SOURCE:Navien, Inc. View source version on accesswire.com:https://www.accesswire.com/550373/Navien-Secures-Leadership-Position-in-Condensing-Boiler-Category
IMF Predicts Central Banks to Issue Digital Currencies The International Monetary Fund (IMF) believes thatcentral banksmay issue digital currencies in the future, according to areportby theIMFon June 27 According to the fullpaper, the IMF andWorld Bankconducted a survey onfintechthat solicited answers from financial institutions within all member countries, and has based its conclusions in part upon the 96 received responses. According to the paper, several central banks in different countries are considering implementing some form of Central Bank Digital Currency (CBDC). Uruguay has reportedly launched a CBDC pilot program already, while the Bahamas,China, EasternCaribbeanCurrency Union,SwedenandUkraineare “on the verge” of testing their systems. Additionally, a number of central banks have reportedly been conducting research on CBDC’s potential impact on financial stability, the structure of thebankingsector, entry of nonbank financial institutions, and monetary policy transmission. Motivation for offering a CBDC varies, per the report. Both emerging economies as well as developed economies are said to be considering CBDC options, with the latter seeking to provide an alternative to cash as its frequency of use dwindles. For emerging economies in developing countries, on the other hand, the main upshot of a CBDC would be reducing banking costs, as well as potentially making banks more available to unbanked citizens. One similarity, however, is that most central banks are not interested in issuing an entirely anonymous CBDC, as the institutions want transactions to ultimately be traceable by authorities when necessary. However, some of these institutions are considering portioning off a subset of tokens reserved for large holdings and transactions, and only making those ones traceable. As previouslyreportedby Cointelegraph, the conservative economist Stephen Moore has recently joined a project to make a Federal Reserve-like entity forcryptocurrencies. The project, Decentral, is a purported attempt to regulate cryptocurrency supply in order to reduce volatility in the crypto market. • Swiss Stock Exchange Asks Central Bank to Issue Stablecoin • A Partner at Binance Labs Expresses Optimism Over Facebook’s Entry Into Crypto With Libra • Crypto Markets Are Green Across the Board as Bitcoin Crosses $12,000 • Kik Hands Off Defend Crypto Fund to The Blockchain Association
SeaLink Travel Group (ASX:SLK) Shareholders Have Enjoyed An Impressive 116% Share Price Gain Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, theSeaLink Travel Group Limited(ASX:SLK) share price has soared 116% in the last half decade. Most would be very happy with that. In the last week the share price is up 3.0%. View our latest analysis for SeaLink Travel Group To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, SeaLink Travel Group managed to grow its earnings per share at 18% a year. So the EPS growth rate is rather close to the annualized share price gain of 17% per year. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination ofhistoric growth trends, available here.. When looking at investment returns, it is important to consider the difference betweentotal shareholder return(TSR) andshare price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of SeaLink Travel Group, it has a TSR of 155% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted thetotalshareholder return. SeaLink Travel Group shareholders are down 11% for the year (even including dividends), but the market itself is up 12%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 21%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before spending more time on SeaLink Travel Groupit might be wise to click here to see if insiders have been buying or selling shares. For those who like to findwinning investmentsthisfreelist of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Facebook Exec Takes Fall for Libra Name, Denies Copying Winklevosses It’s deja vu all over again.Facebookexecutive David Marcus is taking the blame for Libra, saying it was him, not his boss Mark Zuckerberg, who named the new digital currency. Marcus isn’t apologizing for it, however. On the contrary, he’s insisting that the name Libra had nothing at all to do withGemini, the cryptocurrency exchange launched by Zuckerberg rivals Cameron and Tyler Winklevoss. Both Gemini and Libra are astrological signs, but Gemini came on the scene half-a-decade ago. It’s the worst-kept secret that Zuckerberg wastrolling Cameron and Tyler with Libra. And now that David Marcus “doth protest too much,” he’s exposed the fact that Zuckerberg is hiding behind his key officer. While his theory is farfetched, Marcus is either willing to take one for the team or has just been drinking the Facebook Kool-Aid for too long. Marcus makes the micro-argument that he was only thinking about the origin of the word Libra. In French, “libre means freedom.” It also refers to a “unit of weight measure,” even for minting coins, which is a perfect smokescreen behind which to hide if you are creating a new digital currency. And while he vehemently denies copying Gemini, Marcus must realize that while crypto is a nascent industry the community wasn’t born yesterday. By saying “Gemini didn’t even cross my mind for a nanosecond,” Marcus sounds a lot like the “very bad Wizard” in “The Wizard of Oz.” He tells Dorothy and her friends, “Pay no attention to that man behind the curtain” when all the while he is the one pulling the strings. In this case, Zuckerberg is the master puppeteer but the only one he is fooling is himself. Read the full story on CCN.com.
Is ExxonMobil Making a Strategic Mistake? Integrated energy giantsRoyal Dutch Shell(NYSE: RDS-B)andTotal(NYSE: TOT)have bothmade significant investmentsin the electric- and renewable-power spaces, preparing for a future with less carbon-based fuels.ExxonMobil(NYSE: XOM)isn't following them down this road, instead redoubling its efforts on oil, natural gas, and the products they are turned into. Why is Exxon making the strategic decision to double down on carbon fuels, and is this choice a big mistake? Shell has explained that it hopes to create an electricity business that will rival its oil, natural gas, and chemicals operations in size. It plans to ramp up spending on the electric side of its business to as much as $2 billion to $3 billion a year by 2025. It is already starting to build scale in the space with acquisitions like an electric-car charging business, a U.K. utility (rebranded as Shell Energy), renewable-power assets, and an electric storage company. Image source: Getty Images Total isn't far behind. The French oil giant ownsa controlling stake in solar panel manufacturerSunPower, and in 2018bought 75% of European utilityDirect Energie. Clearly, electricity and renewable power are important to this energy giant's future as well. The goal of both companies is to prepare now for a future in which carbon-based fuels like oil and natural gas are less important. Based on global warming concerns, it appears they are making an intelligent allocation decision. Exxon has chosen a different course by sticking to its focus on oil and natural gas, with big plans to expand its operations in the near future. In fact, it intends to spend as much as $35 billion a year over the next few years to develop new production in theupstreamsector and increase its scale in itsdownstreamchemicals and refining businesses. Management has actually increased its spending plans sincefirst laying out its intentions in 2018. So why is Exxon going against the grain here? From the outside, it looks like a mistake, especially since competitors are clearly hedging their bets. Exxon has decided to keep focused on oil and gas because it believes that the world will continue to need material amounts of the fuels for decades to come. The company expects demand to grow slightly between 2016 and 2040. The rate of increase won't be huge, but it doesn't expect demand to fall. A drop in oil demand is what is being projected based on the global push to keep average temperatures from rising no more than two degrees Celsius. ExxonMobil's strategic blueprint. Image source: ExxonMobil There are actually two bets hidden within this decision. The first is that the world won't be able to meet that 2 degree mark, which so far seems like a decent choice. In fact, most countries are falling short of the goals set out in the Paris Climate Accord that created the 2 degree target. The United States notablypulled out of that accord. Simply put, Exxon believes oil and natural gas are too integral to the world to simply jettison them from the energy picture. But even if the 2 degree goals are somehow hit, Exxon isn't all that worried about its choice. That's because oil and natural gas are depleting assets. Once you pull a barrel of oil out of the ground, it is gone forever. Eventually, even the most prolific oil plays run dry. You need to continually replace the oil and natural gas you use with new sources if you want to maintain production over time. Hitting the 2 degree goals would lead to slower growth for natural gas and an outright decline in demand for oil by 2040. When you pair demand with supply, however, you see that the world will still need to spend huge amounts to find new production because of the effect of depletion. The numbers are big either way. In Exxon's model, the world needs to find 550 billion barrels of new oil supply by 2040, with the 2 degree goals dropping that down to a still-material 370 billion barrels. The same general story holds true in natural gas, except that overall demand grows even under the 2 degree scenario. So even if the world can come together on the global warming issue, huge new supplies of oil and gas will be needed. And companies like Exxon will continue to have ample opportunities to invest in carbon-based fuels. To be completely fair to Exxon, it isn't actually ignoring the global push to limit carbon emissions. It has been investing in technology to create biofuelsthrough the use of algae. Although it could be characterized as a moonshot, the hope is that these algae-based biofuels will allow the company to continue using the infrastructure it has today instead of starting over in a wholly new business. Once again, the company's controlled approach to change is on clear display. Exxon has a long history of being conservative (note that long-term debt is a tiny 10% or so of the capital structure). It doesn't generally make dramatic business shifts. Looked at this way, sticking to its knitting makes sense since it appears that oil and gas will be vital sources of energy for at least the next two decades. That remains true even in the best-case scenario for carbon reduction. And there's another fail-safe here. With such modest debt and enough cash flow to invest $35 billion a year in its oil business, Exxon could easily afford to buy a large utility if its energy outlook proves misguided. So it looks to be positioned just fine for the future, even in a worst-case scenario for oil. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market Reuben Gregg Brewerowns shares of ExxonMobil. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has adisclosure policy.
SATS Ltd.'s (SGX:S58) Earnings Dropped -5.0%, Did Its Industry Show Weakness Too? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Measuring SATS Ltd.'s (SGX:S58) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess S58's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements. View our latest analysis for SATS S58's trailing twelve-month earnings (from 31 March 2019) of S$248m has declined by -5.0% compared to the previous year. Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.5%, indicating the rate at which S58 is growing has slowed down. Why is this? Well, let’s take a look at what’s transpiring with margins and if the whole industry is feeling the heat. In terms of returns from investment, SATS has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 10% exceeds the SG Infrastructure industry of 6.1%, indicating SATS has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for SATS’s debt level, has declined over the past 3 years from 13% to 12%. While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. You should continue to research SATS to get a more holistic view of the stock by looking at: 1. Future Outlook: What are well-informed industry analysts predicting for S58’s future growth? Take a look at ourfree research report of analyst consensusfor S58’s outlook. 2. Financial Health: Are S58’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out ourfinancial health checks here. 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore ourfree list of these great stocks here. NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Here's Netflix's Next $1 Billion Opportunity There's little doubt thatNetflix(NASDAQ: NFLX)has been the biggest winner in the ongoing transition from broadcast television to streaming video. Even as competitors likeAmazon.com(NASDAQ: AMZN)and Hulu -- now controlled byWalt Disney(NYSE: DIS)have built thriving business in the wake of Netflix's success, no challenger has yet to achieve its massive customer rolls. The streaming pioneer continues to increase its subscriber base: It has put up more than 25% year-over-year growth in each of the previous four quarters. This adds up to nearly 150 million subscribers, and its worldwide growth shows little signs of slowing. Yet even in light of these stellar increases, Amazon and Hulu have been able to carve out profitable niches in an area that Netflix has thus far ignored: ad-supported streaming. That opportunity could be worth billions of dollars to Netflix. Netflix could make billions offering an ad-supported tier. Image source: Getty Images. Instinet analyst Mark Kelley posits that Netflix is missing out on a lucrative opportunity by not introducing an ad-supported tier. Kelley has run the numbers and conservatively estimates that if Netflix were to introduce a free option supported by advertising, the company would produce more than $1 billion per year in additional revenue. Most of that would drop directly to the bottom line, generating nearly $700 million in additional net income. "An ad-supported tier could [also] provide a lift to free cash flow, reducing the need for Netflix to raise debt frequently, especially beyond 2021 into a potentially rising rate environment," Kelley wrote in a note to clients. Some believe that the opportunity will soon become too difficult to resist. There are a number of ways Netflix could approach advertising. While maintaining its existing service, the company could offer a completely free tier, entirely supported by ads. Netflix could also take a page from Hulu's successful playbook and offer a lower-priced level ($5.99) that is partially supported by ads. Advertising is an idea Netflix has long resisted, but the demand for such an option is undeniable. Hulu recently reported that its subscriber base nowexceeds 28 million. The company added 3.8 million in the first quarter alone, continuing its torrid growth from 2018, when the number of subscribers grew 48% year over year. The company offers an ad-free tier, but more than 70% of its viewers are on its ad-supported plan. While Amazon is best known in streaming video circles for its Prime Video -- which is included as part of its Prime membership -- the company also offers a free tier, via its IMDb TV (formerly IMDb Freedive). The e-commerce leader recently signaled itsgrowing interestin the space by significantly increasing its selection of programming, saying it will triple the content on its platform, adding thousands of new titles. The company will also launch the service in Europe later this year, the clearest sign yet that it sees strong interest for a free, ad-supported offering. Image source: Getty Images. There's more evidence of increasing demand for ad-supported services. Programmatic-advertising specialistThe Trade Desk(NASDAQ: TTD), which uses sophisticated algorithms and high-speed computers to automate the process of ad buying, has seendemand skyrocket. One of the company's fastest-growing segments is streaming television advertising. In the first quarter, ads placed on connected TVs grew more than 300% year over year. While that's impressive, consider this: That growth is on top of ad revenue that grew 900% between 2017 and 2018. Thus far, Netflix has been insistent that advertising would never grace its platform. In an interview last year, Netflix CEO Reed Hastings reiterated the company's stance. "Our content is our crown jewel," he said. "It's up to us to take [subscribers'] money and turn it into great content for their viewing benefit." This follows an unequivocal pronouncement in 2015, when Hastings took to Facebook to say: "No advertising coming onto Netflix. Period." The situation will probably be less black-and-white as time goes on. Netflix could continue to offer the ad-free service it always has, while also instituting a lower-priced (or free) ad-supported tier to augment its existing service. Not only would the move potentially reap billions of dollars in additional revenue, but it could also help the company prosper indeveloping nationswhere its $8.99-per-month plan is viewed as expensive. So far, Netflix has balked at advertising, but the opportunity may eventually become too lucrative to resist. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.Danny Venaowns shares of Amazon, Netflix, The Trade Desk, and Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool owns shares of and recommends Amazon, Netflix, The Trade Desk, and Walt Disney. The Motley Fool has adisclosure policy.
How Do Analysts See SATS Ltd. (SGX:S58) Performing Over The Next Few Years? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In May 2019, SATS Ltd. (SGX:S58) announced its latest earnings update, which confirmed that the company faced a minor headwind with earnings falling from S$261m to S$248m, a change of -5.0%. Below, I've presented key growth figures on how market analysts perceive SATS's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for SATS Market analysts' prospects for the upcoming year seems rather muted, with earnings expanding by a single digit 4.6%. The growth outlook in the following year seems much more optimistic with rates generating double digit 13% compared to today’s earnings, and finally hitting S$295m by 2022. Even though it’s helpful to be aware of the growth rate year by year relative to today’s level, it may be more beneficial evaluating the rate at which the company is growing on average every year. The benefit of this method is that we can get a better picture of the direction of SATS's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 5.9%. This means that, we can expect SATS will grow its earnings by 5.9% every year for the next few years. For SATS, I've put together three pertinent aspects you should further examine: 1. Financial Health: Does it have a healthy balance sheet? Take a look at ourfree balance sheet analysis with six simple checkson key factors like leverage and risk. 2. Valuation: What is S58 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether S58 is currently mispriced by the market. 3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of S58? Exploreour interactive list of stocks with large growth potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
If You Like EPS Growth Then Check Out Beijing Enterprises Water Group (HKG:371) Before It's Too Late Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. And in their study titledWho Falls Prey to the Wolf of Wall Street?'Leuz et. al. found that it is 'quite common' for investors to lose money by buying into 'pump and dump' schemes. In contrast to all that, I prefer to spend time on companies likeBeijing Enterprises Water Group(HKG:371), which has not only revenues, but also profits. Now, I'm not saying that the stock is necessarily undervalued today; but I can't shake an appreciation for the profitability of the business itself. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed. View our latest analysis for Beijing Enterprises Water Group If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. It's no surprise, then, that I like to invest in companies with EPS growth. Impressively, Beijing Enterprises Water Group has grown EPS by 19% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away winners. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Beijing Enterprises Water Group shareholders can take confidence from the fact that EBIT margins are up from 25% to 30%, and revenue is growing. That's great to see, on both counts. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want tocheck this interactive graph of professional analyst EPS forecasts for Beijing Enterprises Water Group. We would not expect to see insiders owning a large percentage of a HK$47b company like Beijing Enterprises Water Group. But we are reassured by the fact they have invested in the company. Indeed, they have a glittering mountain of wealth invested in it, currently valued at HK$1.4b. This suggests to me that leadership will be very mindful of shareholders' interests when making decisions! You can't deny that Beijing Enterprises Water Group has grown its earnings per share at a very impressive rate. That's attractive. I think that EPS growth is something to boast of, and it doesn't surprise me that insiders are holding on to a considerable chunk of shares. Fast growth and confident insiders should be enough to warrant further research. So the answer is that I do think this is a good stock to follow along with. While we've looked at the quality of the earnings, we haven't yet done any work to value the stock. So if you like to buy cheap, you may want tocheck if Beijing Enterprises Water Group is trading on a high P/E or a low P/E, relative to its industry. You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here isa list of companies with insider buying in the last three months. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Why You Should Like C Cheng Holdings Limited’s (HKG:1486) ROCE Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at C Cheng Holdings Limited (HKG:1486) to see whether it might be an attractive investment prospect. Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. First of all, we'll work out how to calculate ROCE. Then we'll compare its ROCE to similar companies. Finally, we'll look at how its current liabilities affect its ROCE. ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Generally speaking a higher ROCE is better. Ultimately, it is a useful but imperfect metric. Author Edwin Whitingsaysto be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for C Cheng Holdings: 0.15 = HK$68m ÷ (HK$668m - HK$214m) (Based on the trailing twelve months to December 2018.) So,C Cheng Holdings has an ROCE of 15%. See our latest analysis for C Cheng Holdings ROCE is commonly used for comparing the performance of similar businesses. Using our data, we find that C Cheng Holdings's ROCE is meaningfully better than the 12% average in the Professional Services industry. I think that's good to see, since it implies the company is better than other companies at making the most of its capital. Separate from C Cheng Holdings's performance relative to its industry, its ROCE in absolute terms looks satisfactory, and it may be worth researching in more depth. We can see that , C Cheng Holdings currently has an ROCE of 15%, less than the 20% it reported 3 years ago. Therefore we wonder if the company is facing new headwinds. You can click on the image below to see (in greater detail) how C Cheng Holdings's past growth compares to other companies. Remember that this metric is backwards looking - it shows what has happened in the past, and does not accurately predict the future. Companies in cyclical industries can be difficult to understand using ROCE, as returns typically look high during boom times, and low during busts. ROCE is only a point-in-time measure. Since the future is so important for investors, you should check out ourfreereport on analyst forecasts for C Cheng Holdings. Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counteract this, we check if a company has high current liabilities, relative to its total assets. C Cheng Holdings has total liabilities of HK$214m and total assets of HK$668m. Therefore its current liabilities are equivalent to approximately 32% of its total assets. C Cheng Holdings has a medium level of current liabilities, which would boost the ROCE. With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better. C Cheng Holdings shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Hedge Funds Have Never Been This Bullish On Liquidia Technologies, Inc. (LQDA) Is Liquidia Technologies, Inc. (NASDAQ:LQDA) a good bet right now? We like to analyze hedge fund sentiment before doing 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. Liquidia Technologies, Inc. (NASDAQ:LQDA)investors should be aware of an increase in hedge fund sentiment in recent months.LQDAwas in 11 hedge funds' portfolios at the end of March. There were 3 hedge funds in our database with LQDA positions at the end of the previous quarter. Our calculations also showed that LQDA isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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. We're going to take a peek at the recent hedge fund action regarding Liquidia Technologies, Inc. (NASDAQ:LQDA). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of 267% from the fourth quarter of 2018. By comparison, 0 hedge funds held shares or bullish call options in LQDA a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Millennium Managementwas the largest shareholder of Liquidia Technologies, Inc. (NASDAQ:LQDA), with a stake worth $7.8 million reported as of the end of March. Trailing Millennium Management was Samsara BioCapital, which amassed a stake valued at $7.3 million. Luminus Management, Endurant Capital Management, and Opaleye Management were also very fond of the stock, giving the stock large weights in their portfolios. As one would reasonably expect, key hedge funds have been driving this bullishness.Luminus Management, managed by Jonathan Barrett and Paul Segal, created the most valuable position in Liquidia Technologies, Inc. (NASDAQ:LQDA). Luminus Management had $3.7 million invested in the company at the end of the quarter. James A. Silverman'sOpaleye Managementalso initiated a $2.6 million position during the quarter. The other funds with new positions in the stock are Ken Griffin'sCitadel Investment Group, Louis Bacon'sMoore Global Investments, and Daniel S. Och'sOZ Management. Let's also examine hedge fund activity in other stocks similar to Liquidia Technologies, Inc. (NASDAQ:LQDA). These stocks are Global Water Resources, Inc. (NASDAQ:GWRS), Frontier Communications Corporation (NASDAQ:FTR), Abraxas Petroleum Corp. (NASDAQ:AXAS), and Avedro, Inc. (NASDAQ:AVDR). This group of stocks' market valuations are similar to LQDA's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GWRS,6,9879,-1 FTR,18,20124,3 AXAS,12,26998,1 AVDR,13,65244,13 Average,12.25,30561,4 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $29 million in LQDA's case. Frontier Communications Corporation (NASDAQ:FTR) is the most popular stock in this table. On the other hand Global Water Resources, Inc. (NASDAQ:GWRS) is the least popular one with only 6 bullish hedge fund positions. Liquidia Technologies, Inc. (NASDAQ:LQDA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately LQDA wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); LQDA investors were disappointed as the stock returned -22.9% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Axovant Gene Therapies Ltd. (AXGT) Going to Burn These Hedge Funds? "Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value investors since data collection began. It will go our way eventually as there are too many people paying far too much for today's darlings, both public and private. Further, the ten-year yield of 2.5% (pre-tax) isn't attractive nor is real estate. We believe the value part of the global equity market is the only place to earn solid risk adjusted returns and we believe those returns will be higher than normal," said Vilas Fund in itsQ1 investor letter. We aren't sure whether value stocks outperform growth, but we follow hedge fund investor letters to understand where the markets and stocks might be going. That's why we believe it would be worthwhile to take a look at the hedge fund sentiment on Axovant Gene Therapies Ltd. (NASDAQ:AXGT) in order to identify whether reputable and successful top money managers continue to believe in its potential. IsAxovant Gene Therapies Ltd. (NASDAQ:AXGT)ready to rally soon? The smart money is taking an optimistic view. The number of long hedge fund positions rose by 3 lately. Our calculations also showed that AXGT isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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. We're going to check out the recent hedge fund action regarding Axovant Gene Therapies Ltd. (NASDAQ:AXGT). Heading into the second quarter of 2019, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 38% from one quarter earlier. On the other hand, there were a total of 9 hedge funds with a bullish position in AXGT a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves. According to Insider Monkey's hedge fund database, James E. Flynn'sDeerfield Managementhas the number one position in Axovant Gene Therapies Ltd. (NASDAQ:AXGT), worth close to $5.3 million, corresponding to 0.2% of its total 13F portfolio. The second most bullish fund manager is Jim Simons ofRenaissance Technologies, with a $3.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other members of the smart money that are bullish consist of Ken Griffin'sCitadel Investment Group, Efrem Kamen'sPura Vida Investmentsand Vishal Saluja and Pham Quang'sEndurant Capital Management. As industrywide interest jumped, specific money managers have been driving this bullishness.Pura Vida Investments, managed by Efrem Kamen, established the most outsized position in Axovant Gene Therapies Ltd. (NASDAQ:AXGT). Pura Vida Investments had $2 million invested in the company at the end of the quarter. Vishal Saluja and Pham Quang'sEndurant Capital Managementalso initiated a $1.9 million position during the quarter. The following funds were also among the new AXGT investors: Warren Lammert'sGranite Point Capital, Paul Marshall and Ian Wace'sMarshall Wace LLP, and Michael Gelband'sExodusPoint Capital. Let's now review hedge fund activity in other stocks similar to Axovant Gene Therapies Ltd. (NASDAQ:AXGT). These stocks are Maxwell Technologies Inc. (NASDAQ:MXWL), electroCore, Inc. (NASDAQ:ECOR), Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH), and SB One Bancorp (NASDAQ:SBBX). All of these stocks' market caps are closest to AXGT's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MXWL,12,44867,5 ECOR,3,4112,0 SPWH,17,34537,2 SBBX,5,17646,1 Average,9.25,25291,2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9.25 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $21 million in AXGT's case. Sportsman's Warehouse Holdings Inc (NASDAQ:SPWH) is the most popular stock in this table. On the other hand electroCore, Inc. (NASDAQ:ECOR) is the least popular one with only 3 bullish hedge fund positions. Axovant Gene Therapies Ltd. (NASDAQ:AXGT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately AXGT wasn't nearly as popular as these 20 stocks and hedge funds that were betting on AXGT were disappointed as the stock returned -47.6% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
How Facebook Inc and Other Hedge Fund Favorites Performed in Q2 Insider Monkey tracks hedge funds, billionaires, and prominent value investors for a very simple reason: their consensus picks generally outperform the market. We aren’t the only research shop broadcasting this fact using a bullhorn. Here is what strategist Ben Snider said in Goldman Sachs’ periodic hedge fund report: “Despite the strong track record of popular hedge fund stocks, investors often view high ownership as a negative trait when evaluating stock prospects. Clients often ask us to include hedge fund ownership data in stock screens, expressing a preference for buying ‘under-owned’ stocks.” “In fact, during the past decade hedge fund popularity has been a more useful criterion for selecting stocks than valuations…. The signals from hedge fund popularity and valuation have been particularly useful in combination, especially for investors with slightly longer investment horizons. During the past decade, popular stocks have generally outperformed unpopular stocks across both 3- and 12-month investment horizons” Snider concluded. It may sound like I am tooting my own horn, but Insider Monkey’s quarterly newsletter is actually superior to Goldman’s report. That’s because we separated the hedge fund favorites into long and short buckets. Our long bucket of hedge fund favorites returned 34.1% in the first half of 2019, whereas our short bucket of hedge fund favorites gained 21.4% during the same period. Hedge funds’ favorite top 20 stocks, on the other hand, returned 24% so far in 2019. You could have beaten the S&P 500 Index funds by 5.7 percentage points by investing in hedge funds’ top 20 picks in 2019, whereas you could have outperformed the index funds by 15.8 percentage points if you invested in our top hedge fund picks. You cantry out our newsletterfree of charge for 14 days to see hedge funds’ latest best stock picks. The #1 most popular stock among the 743 hedge funds tracked by Insider Monkey wasFacebook Inc (NASDAQ:FB).Facebook was the third most popular stock among hedge funds at the end of December (see the30 most popular stocks among hedge funds). We have to warn you about indiscriminately imitating hedge funds' all stock picks. Hedge funds' top 20 stock picks outperformed the S&P 500 Index funds by 5.7 percentage points this year, but hedge funds' top 500 stock picks had the same return as the S&P 500 Index this quarter. Investing in a hedge fund's 35th best idea doesn't give you the same return as investing in a hedge fund's best idea. [caption id="attachment_745223" align="aligncenter" width="473"] Daniel Sundheim of D1 Capital[/caption] Let's take a look at the fresh hedge fund action regarding Facebook Inc (NASDAQ:FB). Heading into the second quarter of 2019, a total of 176 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the previous quarter. On the other hand, there were a total of 180 hedge funds with a bullish position in FB a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Tiger Global Managementwas the largest shareholder of Facebook Inc (NASDAQ:FB), with a stake worth $1473.2 million reported as of the end of March. Trailing Tiger Global Management was Citadel Investment Group, which amassed a stake valued at $1176.8 million. AQR Capital Management, Citadel Investment Group, and Lone Pine Capital were also very fond of the stock, giving the stock large weights in their portfolios. Now, specific money managers have been driving this bullishness.D1 Capital Partners, managed by Daniel Sundheim, created the most outsized position in Facebook Inc (NASDAQ:FB). D1 Capital Partners had $332.5 million invested in the company at the end of the quarter. Doug Silverman and Alexander Klabin'sSenator Investment Groupalso made a $159.2 million investment in the stock during the quarter. The following funds were also among the new FB investors: David Goel and Paul Ferri'sMatrix Capital Management, Robert Pitts'sSteadfast Capital Management, and Edmond M. Safra'sEMS Capital. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Facebook Inc (NASDAQ:FB) but similarly valued. These stocks are Alibaba Group Holding Limited (NYSE:BABA), Johnson & Johnson (NYSE:JNJ), Visa Inc (NYSE:V), and Exxon Mobil Corporation (NYSE:XOM). This group of stocks' market caps resemble FB's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BABA,117,13936754,4 JNJ,69,5801877,-4 V,124,13224012,-4 XOM,49,1310955,-4 Average,89.75,8568400,-2 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 89.75 hedge funds with bullish positions and the average amount invested in these stocks was $8568 million. That figure was $18350 million in FB's case. Visa Inc (NYSE:V) is the most popular stock in this table. On the other hand Exxon Mobil Corporation (NYSE:XOM) is the least popular one with only 49 bullish hedge fund positions. Compared to these stocks Facebook Inc (NASDAQ:FB) is more popular among hedge funds. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.4% in Q2 and outperformed the S&P 500 ETF (SPY) by more than percentage points. Hedge funds were also right about betting on FB as the stock returned 15.8% during the same period and outperformed the market by an even larger margin. Facebook shares also gained 47.2% this year. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations. Disclosure: None. This article was originally published atInsider Monkey.
Hedge Funds Have Never Been This Bullish On Corenergy Infrastructure Trust Inc (CORR) With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the first quarter. One of these stocks was Corenergy Infrastructure Trust Inc (NYSE:CORR). Corenergy Infrastructure Trust Inc (NYSE:CORR)was in 11 hedge funds' portfolios at the end of March. CORR investors should pay attention to an increase in activity from the world's largest hedge funds recently. There were 7 hedge funds in our database with CORR holdings at the end of the previous quarter. Our calculations also showed that corr isn't among the30 most popular stocks among hedge funds. In the eyes of most investors, hedge funds are perceived as unimportant, old financial tools of years past. While there are greater than 8000 funds trading at the moment, Our researchers look at the leaders of this group, approximately 750 funds. It is estimated that this group of investors oversee the lion's share of the hedge fund industry's total capital, and by keeping track of their inimitable picks, Insider Monkey has found a number of investment strategies that have historically surpassed the S&P 500 index. Insider Monkey's flagship hedge fund strategy surpassed the S&P 500 index by around 5 percentage points annually since its inception in May 2014 through June 18th. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 28.2% since February 2017 (through June 18th) even though the market was up nearly 30% during the same period. We just shared a list of 5 short targets in ourlatest quarterly updateand they are already down an average of 8.2% in a month whereas our long picks outperformed the market by 2.5 percentage points in this volatile 5 week period (our long picks also beat the market by 15 percentage points so far this year). We're going to take a peek at the recent hedge fund action regarding Corenergy Infrastructure Trust Inc (NYSE:CORR). 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 one quarter earlier. On the other hand, there were a total of 8 hedge funds with a bullish position in CORR a year ago. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions). According to Insider Monkey's hedge fund database,Renaissance Technologies, managed by Jim Simons, holds the biggest position in Corenergy Infrastructure Trust Inc (NYSE:CORR). Renaissance Technologies has a $33.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Peter Rathjens, Bruce Clarke and John Campbell ofArrowstreet Capital, with a $6.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that are bullish contain John Overdeck and David Siegel'sTwo Sigma Advisors, Ken Griffin'sCitadel Investment Groupand David Harding'sWinton Capital Management. With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls' herd.Winton Capital Management, managed by David Harding, initiated the most outsized position in Corenergy Infrastructure Trust Inc (NYSE:CORR). Winton Capital Management had $0.5 million invested in the company at the end of the quarter. Bruce Kovner'sCaxton Associates LPalso made a $0.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace'sMarshall Wace LLP, Matthew Tewksbury'sStevens Capital Management, and Israel Englander'sMillennium Management. Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Corenergy Infrastructure Trust Inc (NYSE:CORR) but similarly valued. We will take a look at PennantPark Investment Corp. (NASDAQ:PNNT), Dynavax Technologies Corporation (NASDAQ:DVAX), Bonanza Creek Energy Inc (NYSE:BCEI), and CURO Group Holdings Corp. (NYSE:CURO). This group of stocks' market values are similar to CORR's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PNNT,9,13823,0 DVAX,16,85298,-2 BCEI,16,158718,2 CURO,17,85677,7 Average,14.5,85879,1.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $43 million in CORR's case. CURO Group Holdings Corp. (NYSE:CURO) is the most popular stock in this table. On the other hand PennantPark Investment Corp. (NASDAQ:PNNT) is the least popular one with only 9 bullish hedge fund positions. Corenergy Infrastructure Trust Inc (NYSE:CORR) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on CORR as the stock returned 11.8% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Lifevantage Corporation (LFVN) A Good Stock To Buy ? There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Jeff Ubben, George Soros and Carl Icahn think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don't cover. Because of Carl Icahn and other elite funds' exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze Lifevantage Corporation (NASDAQ:LFVN). Hedge fund interest inLifevantage Corporation (NASDAQ:LFVN)shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare LFVN to other stocks including Foamix Pharmaceuticals Ltd (NASDAQ:FOMX), Unity Bancorp, Inc. (NASDAQ:UNTY), and Net 1 UEPS Technologies Inc (NASDAQ:UEPS) to get a better sense of its popularity. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. [caption id="attachment_758442" align="aligncenter" width="450"] Michael Platt of Bluecrest Capital Management[/caption] We're going to take a glance at the recent hedge fund action surrounding Lifevantage Corporation (NASDAQ:LFVN). At the end of the first quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards LFVN over the last 15 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Lifevantage Corporation (NASDAQ:LFVN), with a stake worth $15.8 million reported as of the end of March. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $2.6 million. Arrowstreet Capital, Laurion Capital Management, and ExodusPoint Capital were also very fond of the stock, giving the stock large weights in their portfolios. Seeing as Lifevantage Corporation (NASDAQ:LFVN) has experienced bearish sentiment from hedge fund managers, it's easy to see that there was a specific group of fund managers that elected to cut their positions entirely heading into Q3. It's worth mentioning that Mark Broach'sManatuck Hill Partnersdumped the biggest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $2.6 million in call options. Ken Griffin's fund,Citadel Investment Group, also dropped its call options, about $0.3 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience). Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Lifevantage Corporation (NASDAQ:LFVN) but similarly valued. These stocks are Foamix Pharmaceuticals Ltd (NASDAQ:FOMX), Unity Bancorp, Inc. (NASDAQ:UNTY), Net 1 UEPS Technologies Inc (NASDAQ:UEPS), and PICO Holdings Inc (NASDAQ:PICO). This group of stocks' market valuations are similar to LFVN's market valuation. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FOMX,15,66772,0 UNTY,4,29798,0 UEPS,10,68145,-3 PICO,7,24519,-1 Average,9,47309,-1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $24 million in LFVN's case. Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) is the most popular stock in this table. On the other hand Unity Bancorp, Inc. (NASDAQ:UNTY) is the least popular one with only 4 bullish hedge fund positions. Lifevantage Corporation (NASDAQ:LFVN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately LFVN wasn't nearly as popular as these 20 stocks and hedge funds that were betting on LFVN were disappointed as the stock returned -15% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in Q2. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Is Vishay Precision Group Inc (VPG) A Good Stock To Buy ? Many investors, including Paul Tudor Jones or Stan Druckenmiller, have beensayingbefore the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first quarter, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first quarter still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Vishay Precision Group Inc (NYSE:VPG) changed recently. Vishay Precision Group Inc (NYSE:VPG)shareholders have witnessed a decrease in activity from the world's largest hedge funds lately. Our calculations also showed that VPG isn't among the30 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 review the latest hedge fund action encompassing Vishay Precision Group Inc (NYSE:VPG). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -15% from the previous quarter. By comparison, 16 hedge funds held shares or bullish call options in VPG a year ago. With hedge funds' sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions). The largest stake in Vishay Precision Group Inc (NYSE:VPG) was held byNokomis Capital, which reported holding $66.5 million worth of stock at the end of March. It was followed by Renaissance Technologies with a $24.3 million position. Other investors bullish on the company included Royce & Associates, Harvey Partners, and D E Shaw. Because Vishay Precision Group Inc (NYSE:VPG) has witnessed bearish sentiment from the entirety of the hedge funds we track, it's safe to say that there was a specific group of funds who were dropping their positions entirely heading into Q3. Intriguingly, Thomas Bailard'sBailard Incdropped the biggest investment of the "upper crust" of funds monitored by Insider Monkey, valued at about $0.4 million in stock. Gavin Saitowitz and Cisco J. del Valle's fund,Springbok Capital, also dropped its stock, about $0.1 million worth. These moves are important to note, as total hedge fund interest dropped by 2 funds heading into Q3. Let's check out hedge fund activity in other stocks similar to Vishay Precision Group Inc (NYSE:VPG). We will take a look at Waterstone Financial, Inc. (NASDAQ:WSBF), Translate Bio, Inc. (NASDAQ:TBIO), Azure Power Global Limited (NYSE:AZRE), and DBV Technologies S.A. (NASDAQ:DBVT). This group of stocks' market caps match VPG's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WSBF,11,76446,2 TBIO,7,88688,0 AZRE,6,6684,0 DBVT,8,76647,3 Average,8,62116,1.25 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $129 million in VPG's case. Waterstone Financial, Inc. (NASDAQ:WSBF) is the most popular stock in this table. On the other hand Azure Power Global Limited (NYSE:AZRE) is the least popular one with only 6 bullish hedge fund positions. Vishay Precision Group Inc (NYSE:VPG) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on VPG as the stock returned 13% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Did Hedge Funds Drop The Ball On Aratana Therapeutics Inc (PETX)? It was a rough fourth quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 4.8% during 2018 and average hedge fund losing about 1%. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by more than 6 percentage points, as investors fled less-known quantities for safe havens. Luckily hedge funds were shifting their holdings into large-cap stocks. The 20 most popular hedge fund stocks actually generated an average return of 18.7% so far in 2019 and outperformed the S&P 500 ETF by 6.6 percentage points. We are done processing the latest 13f filings and in this article we will study how hedge fund sentiment towards Aratana Therapeutics Inc (NASDAQ:PETX) changed during the first quarter. Aratana Therapeutics Inc (NASDAQ:PETX)was in 11 hedge funds' portfolios at the end of the first quarter of 2019. PETX investors should pay attention to a decrease in enthusiasm from smart money of late. There were 12 hedge funds in our database with PETX holdings at the end of the previous quarter. Our calculations also showed that PETX isn't among the30 most popular stocks among hedge funds. Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. 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 check out the key hedge fund action regarding Aratana Therapeutics Inc (NASDAQ:PETX). At Q1's end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -8% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards PETX over the last 15 quarters. With hedge funds' sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were adding to their holdings substantially (or already accumulated large positions). The largest stake in Aratana Therapeutics Inc (NASDAQ:PETX) was held byBroadfin Capital, which reported holding $26.1 million worth of stock at the end of March. It was followed by Engaged Capital with a $8.7 million position. Other investors bullish on the company included Impax Asset Management, Moore Global Investments, and Renaissance Technologies. Judging by the fact that Aratana Therapeutics Inc (NASDAQ:PETX) has faced bearish sentiment from the smart money, it's easy to see that there exists a select few fund managers that decided to sell off their entire stakes heading into Q3. Interestingly, Paul Marshall and Ian Wace'sMarshall Wace LLPsold off the largest position of all the hedgies monitored by Insider Monkey, valued at close to $1 million in stock, and Noam Gottesman's GLG Partners was right behind this move, as the fund cut about $0.2 million worth. These moves are interesting, as aggregate hedge fund interest fell by 1 funds heading into Q3. Let's check out hedge fund activity in other stocks similar to Aratana Therapeutics Inc (NASDAQ:PETX). We will take a look at Ardelyx Inc (NASDAQ:ARDX), IDT Corporation (NYSE:IDT), Olympic Steel, Inc. (NASDAQ:ZEUS), and Akoustis Technologies, Inc. (NASDAQ:AKTS). This group of stocks' market values are similar to PETX's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ARDX,12,39504,-2 IDT,14,22240,0 ZEUS,8,4368,2 AKTS,8,5028,4 Average,10.5,17785,1 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $41 million in PETX's case. IDT Corporation (NYSE:IDT) is the most popular stock in this table. On the other hand Olympic Steel, Inc. (NASDAQ:ZEUS) is the least popular one with only 8 bullish hedge fund positions. Aratana Therapeutics Inc (NASDAQ:PETX) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Hedge funds were also right about betting on PETX as the stock returned 37.5% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Why Netflix Losing “The Office” Might Actually Matter The value proposition of aNetflix(NASDAQ: NFLX)subscription is pretty simple: The service has a ridiculous amount of content to suit virtually every taste whether your preferences run toStranger ThingsorThe Crown,Ozarkor a bunch of silly Adam Sandler comedies. And we don't need to tell you that the megasmorgasbord approach works for them. But all of the options mentioned above are Netflix originals, and asMarket Fooleryhost Mac Greer and senior analyst Ron Gross discuss in this segment of the podcast, there's likely a significant number of subscribers who use the service most heavily to watch reruns of their old favorites -- likeThe Office. So the news that NBC outbid Netflix for the rights to that extraordinarily popular show and will be pulling it from the streamer in 2021 ought to get investors' attention. How many television classics can Netflix lose before it starts to feel a pinch? To catch full episodes of all The Motley Fool's free podcasts, check out ourpodcast center. A full transcript follows the video. More From The Motley Fool • 10 Best Stocks to Buy Today • The $16,728 Social Security Bonus You Cannot Afford to Miss • 20 of the Top Stocks to Buy (Including the Two Every Investor Should Own) • What Is an ETF? • 5 Recession-Proof Stocks • How to Beat the Market This video was recorded on June 26, 2019. Mac Greer:Ron, our final story, Netflix. Let's talk some Netflix. At the time of our taping, shares are actually up slightly. That was a bit of a surprise because of news coming out that NBC is pulling its hit showThe Officefrom Netflix when that deal ends at the start of 2021. Now, interesting to see how this played out.The Officeis produced by Universal Television. They held an auction. NBC bid $100 million per year for five years, edging out Netflix. Now, maybe they had a bit of an inside track. We were talking about that. Regardless,The Office, leaving Netflix in 2021. What do you think? Ron Gross:I think it's a big deal in and of itself, but the bigger deal is, is this going to continue to happen? IsFriendsnext, for example? I think the answer is probably yes. Lots of folks watch Netflix for the repeats of their favorite shows, not necessarily original content. You and I were discussing earlier before the show. If they're going to lose just a few key hit shows, I would imagine that's going to be a serious hit to their value proposition. Greer:Yeah, you mentioned that. It's a little tough to get at this because Netflix guards their data, but I've always had thisStranger Thingstheory of the case, that we would subscribe to Netflix ifStranger Thingswas the only show they had. Now, the question is, do most people fit into that? Or are most people using Netflix to watch archived shows likeThe Office? I guess we're going to find out. Gross:I guess. It may be based on demographics. I think younger folks like to watch the repeats of their favorite shows. Maybe old fogies like us enjoy the original content. I'm just making that up. But perhaps that's how it divides, based on demographics. But clearly, if you're going to charge a fee and continue to want to raise that monthly fee, like Netflix likes to do here and there, you have to have the content, you have to put the right content forth. It's going to be a combination of their own, as well as other people's favorite shows. Mac Greerowns shares of Netflix.Ron Grosshas no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Netflix. The Motley Fool has adisclosure policy.
Biden Defends Past Civil Rights Record After Harris Attack Joe Biden strongly defended his civil rights record on Friday, pledging to be a “president who stands against racism” and defiantly dismissing any suggestions otherwise. Speaking to the Rev. Jesse Jackson’s Rainbow PUSH Coalition, the white former vice president was working to repair the damage froma blistering attack from California Sen. Kamala Harris, the lone black woman in the 2020 presidential race. During Thursday’s presidential debate , Harris criticized Biden for recently highlighting his decades-old work with segregationist senators and his opposition to public school busing during the 1970s — creating a dramatic and deeply personal breakout moment. “I heard, and I listened to, and I respect Sen. Harris,” Biden said. “But we all know that 30 seconds to 60 seconds on a campaign debate exchange can’t do justice to a lifetime commitment to civil rights.” Biden has surged to the top of the Democratic pack arguing that he’s best positioned to defeat President Donald Trump because he can build a broad coalition of support. Appearances such as the one with Jackson — his onetime rival in the 1988 Democratic presidential primary — will signal whether Harris’ attack will chip into his support among African Americans. He acknowledged the critical role of black voters and labor unions on Friday, saying, “Y’all are the ones that brung me to the dance.” Biden pushed back against some of Harris’ specific criticisms, including her argument that he once opposed busing. He said he was more opposed to federal intervention in busing than the practice itself. “I never, never, never, ever opposed voluntary busing,” Biden said, adding that he supported federal legislation to “address root causes of segregation in our schools” and that he was always “in favor of using federal authority to overcome state-initiated segregation” — even in bygone days when it wasn’t popular. But even while defending his own record, Biden still tempted controversy. He said he envisioned a society in which everyone realizes the “kid in the hoodie might be the next poet laureate and not a gangbanger.” New Jersey Sen. Cory Booker, a 2020 Democratic presidential rival, challenged Biden on his word choice, saying in a tweet that the issue was about more than just a hoodie. “It’s about a culture that sees a problem with a kid wearing a hoodie in the first place. Our nominee needs to have the language to talk about race in a far more constructive way,” said Booker, who had pushed back against comments made by Biden a week earlier in which he nostalgically referenced the “civility” he maintained during his time in the Senate with two segregationist Democrats in the 1970s despite their vast distance in ideology. California attorney Tom McInerney signed up to be on Biden’s national finance team but said he notified the campaign this month that he was withdrawing his support. He pointed to what he called repeated missteps, including Biden’s comments on segregationists and the former vice president’s recent reversal on the Hyde Amendment, a long-standing congressional ban on using federal health care money to pay for abortions. His reversal — he now says he opposes the amendment — came after rivals and women’s rights group blasted him for affirming through campaign aides that he still supported the decades-old budget provision. “I have tremendous respect for the vice president. However, I just became increasingly troubled by his comments,” McInerney said Friday. “It just seems like he wasn’t thinking this through.” Biden’s campaign offered no immediate comment on McInerney’s withdrawal. Also during Friday’s event, Biden leaned heavily on being Barack Obama’s vice president, something he didn’t do as much during the debate, when Harris’ relentless criticism often left him flustered and seemingly unsure of what to say. “My president gets much too little credit for all that he did. He was one of the great presidents of the United States of America, and I’m tired of hearing about what he didn’t do,” Biden said of Obama. Sylvia Chapman, 60, of Chicago, attended Biden’s speech and said Thursday’s confrontation between Harris and Biden was “just a few minutes of talk.” “You have to look at the whole picture, not just one chapter out of a book,” said Chapman, who is black and is the president of a union local in Chicago. She said she’s undecided about who to support in 2020, but Biden is among the top of her choices, along with Sens. Bernie Sanders, Elizabeth Warren and Harris. Patricia Ousley, 69, a black retired state employee from the Chicago suburb of South Holland, cheered loudly when Biden told the crowd Obama doesn’t get the credit he deserves. She says Biden’s experience working alongside Obama is a big reason she may support him in 2020: “I love that.” —What the2020 Democratic candidates didn’t sayduring the second debate —Harris has a strong showing, stuns Biden on night 2 of Democratic debate —2019Democratic debate night 1: Highlights —2019Democratic debate night 2: Highlights —Fact-checkingclaims from night 1 of the Democratic debate —Fact-checkingclaims from night 2 of the Democratic debate
Is Pico Far East Holdings Limited’s (HKG:752) 13% ROCE Any Good? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Today we are going to look at Pico Far East Holdings Limited (HKG:752) to see whether it might be an attractive investment prospect. To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. First, we'll go over how we calculate ROCE. Then we'll compare its ROCE to similar companies. Then we'll determine how its current liabilities are affecting its ROCE. ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. In general, businesses with a higher ROCE are usually better quality. Overall, it is a valuable metric that has its flaws. Renowned investment researcher Michael Mauboussinhas suggestedthat a high ROCE can indicate that 'one dollar invested in the company generates value of more than one dollar'. Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Pico Far East Holdings: 0.13 = HK$337m ÷ (HK$4.5b - HK$2.0b) (Based on the trailing twelve months to April 2019.) Therefore,Pico Far East Holdings has an ROCE of 13%. View our latest analysis for Pico Far East Holdings One way to assess ROCE is to compare similar companies. In our analysis, Pico Far East Holdings's ROCE is meaningfully higher than the 8.3% average in the Media industry. We consider this a positive sign, because it suggests it uses capital more efficiently than similar companies. Regardless of where Pico Far East Holdings sits next to its industry, its ROCE in absolute terms appears satisfactory, and this company could be worth a closer look. We can see that , Pico Far East Holdings currently has an ROCE of 13%, less than the 21% it reported 3 years ago. This makes us wonder if the business is facing new challenges. You can see in the image below how Pico Far East Holdings's ROCE compares to its industry. Click to see more on past growth. It is important to remember that ROCE shows past performance, and is not necessarily predictive. ROCE can be deceptive for cyclical businesses, as returns can look incredible in boom times, and terribly low in downturns. This is because ROCE only looks at one year, instead of considering returns across a whole cycle. Future performance is what matters, and you can see analyst predictions in ourfreereport on analyst forecasts for the company. Current liabilities are short term bills and invoices that need to be paid in 12 months or less. The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise. To counter this, investors can check if a company has high current liabilities relative to total assets. Pico Far East Holdings has total assets of HK$4.5b and current liabilities of HK$2.0b. As a result, its current liabilities are equal to approximately 44% of its total assets. Pico Far East Holdings has a middling amount of current liabilities, increasing its ROCE somewhat. With a decent ROCE, the company could be interesting, but remember that the level of current liabilities make the ROCE look better. Pico Far East Holdings shapes up well under this analysis,but it is far from the only business delivering excellent numbers. You might also want to check thisfreecollection of companies delivering excellent earnings growth. If you like to buy stocks alongside management, then you might just love thisfreelist of companies. (Hint: insiders have been buying them). We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Does Pico Far East Holdings Limited's (HKG:752) CEO Pay Compare Well With Peers? Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! Lawrence Chia is the CEO of Pico Far East Holdings Limited (HKG:752). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels. See our latest analysis for Pico Far East Holdings Our data indicates that Pico Far East Holdings Limited is worth HK$3.2b, and total annual CEO compensation is HK$15m. (This number is for the twelve months until October 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$6.8m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.4m. It would therefore appear that Pico Far East Holdings Limited pays Lawrence Chia more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. The graphic below shows how CEO compensation at Pico Far East Holdings has changed from year to year. Over the last three years Pico Far East Holdings Limited has shrunk its earnings per share by an average of 4.3% per year (measured with a line of best fit). Its revenue is up 5.6% over last year. Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to checkthis free visual report onanalyst forecastsfor future earnings. Most shareholders would probably be pleased with Pico Far East Holdings Limited for providing a total return of 42% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. We examined the amount Pico Far East Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group. Earnings per share have not grown in three years, and the revenue growth fails to impress us. On the other hand, returns have been good, so the company is doing something right. So on this analysis we'd stop short of criticizing the level of CEO compensation. CEO compensation is one thing, but it is also interesting tocheck if the CEO is buying or selling Pico Far East Holdings (free visualization of insider trades). Arguably, business quality is much more important than CEO compensation levels. So check out thisfreelist of interesting companies, that have HIGH return on equity and low debt. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Megan Rapinoe accepts Ocasio-Cortez's invite to visit D.C. Megan Rapinoe has made her feelings about President Donald Trump very clear throughout the World Cup this summer — and has repeatedly said that she has no interest in visiting the White House after the tournament. Rapinoe, it appears, will still be making the trip to Washington D.C. New York Rep. Alexandria Ocasio-Cortez invited Rapinoe and the USWNT to tour the House of Representatives shortly after their 2-1 win against France in the quarterfinals on Friday . It may not be the White House, but we’d be happy to welcome @mPinoe & the entire #USWMNT for a tour of the House of Representatives anytime they’d like. 🇺🇸 https://t.co/ccgqE8vCds — Alexandria Ocasio-Cortez (@AOC) June 28, 2019 Rapinoe quickly accepted. Consider it done @AOC 🥳 — Megan Rapinoe (@mPinoe) June 29, 2019 Rapinoe has been involved in a cross-Atlantic feud with Trump throughout the World Cup. First, she garnered criticism for not singing the national anthem ahead of games — a practice that’s nothing new to the 33-year-old, who has said that the “Star Spangled Banner” is a “somber moment” for a “peaceful protest” of inequality and injustice throughout the United States . An old video surfaced last week, too, which featured Rapinoe saying, “I’m not going to the f---ing White House,” if they were to win the World Cup. That didn’t sit well with Trump, who — after mistakingly thinking that the comments were new — tweeted at Rapinoe multiple times, keeping their feud alive . While Megan Rapinoe has made it clear she has no interest in visiting Donald Trump at the White House after the World Cup, it appears she and the USWNT will go visit Rep. Alexandria Ocasio-Cortez in Washington instead. (AP/Francisco Seco) Rapinoe, though, stood by her comments — and her teammates and coaches stood by her. Story continues “Hopefully [we are] using [that platform] for good and leaving the game in a better place and hopefully the world in a better place,” Rapinoe said earlier this week. “I don’t think I would want to go (to the White House). And I would encourage my teammates to think hard about lending that platform or having it co-opted by an administration that does not feel the same way and fight for the same things that we fight for.” So while she clearly won’t be visiting Trump at the White House, still expect to see Rapinoe and other members of the USWNT in Washington for the customary trip sometime this fall after they return from France. More from Yahoo Sports: Rose responds to LaVar Ball's cringeworthy remark Former WWE star tells harrowing depression tale Brady takes subtle shot at ESPN star's 'cliff' comment Report: Thompson, Warriors expected to reach max deal
Round 2 of Democratic Debate Is Party's Most-Watched Ever NBC says round two of the Democratic presidential debate was the party’s most-watched ever. Based on Nielsen figures out Friday, the event including early front-runners Joe Biden and Bernie Sanders averaged 18.1 million viewers across NBC, MSNBC and Telemundo. That topped the previous Democratic debate audience high of 15.5 million for an October 2015 event, which included eventual nominee Hillary Clinton. Viewership for that debate was previously estimated at 15.8 million. Neither of this week’s debates approached the audience for the first 2016 GOP primary debate, with newcomer Donald Trump driving curiosity. It drew nearly 24 million viewers on Fox News Channel. The pair of Democratic debates, the first of the 2020 campaign, split a field of 20 contenders into two groups. A headline-making exchange Thursday involved former Vice President Biden and Sen. Kamala Harris, who sparred over Biden’s civil rights record. —What the2020 Democratic candidates didn’t sayduring the second debate —Harris has a strong showing, stuns Biden on night 2 of Democratic debate —2019Democratic debate night 2: Highlights —Fact-checkingclaims from night 1 of the Democratic debate —Fact-checkingclaims from night 2 of the Democratic debate
Lady Gaga Surprises Crowd With Impassioned Speech at Stonewall Day Concert Click here to read the full article. Lady Gaga made a surprise appearance Friday at Pride Live’s Stonewall Day Concert, an event commemorating the 50th anniversary of the Stonewall uprising. The event is part of a weekend of Pride events, culminating with Sunday’s march. Related stories 'A Star Is Born' Soundtrack Surpasses Global Sales of 6 Million Concert Review: Lady Gaga Dazzles Pride-Week Crowd With Hit-Packed Show at Apollo Theater Lady Gaga Talks Importance of Pronouns, Gay Pride During Rousing Speech Gaga, a vocal supporter of LGBTQ rights, delivered an impassioned speech to the New York crowd. “Look around you. Look at what you have done,” the “Born This Way” singer said. “You are the definition of courage, do you know that?” “This is my mothership. And you, you are my leaders. And I will follow you,” she addressed the crowd. “I surrender to all hatred. Cause you know what? I will kill it with kindness. True love. True, true love is when you take a bullet for someone. And I would take a bullet for you any day of the week,” Gaga continued. The pop star called out attacks on the transgender community at the close of her speech. “It is said that those who threw the first brick on that historic night were members of the trans community. And while we have made tremendous progress, we find ourselves at a time where attacks on the trans community are on an increasing rise each day. I will not tolerate this,” she said. Gaga joined other speakers and performers at the event such as Chelsea Clinton, Donatella Versace, Whoopi Goldberg, Valerie Jarrett and Alicia Keys. Sign up for Variety’s Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
Investors Who Bought SIA Engineering (SGX:S59) Shares Five Years Ago Are Now Down 50% Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But even the best stock picker will only win withsomeselections. So we wouldn't blame long termSIA Engineering Company Limited(SGX:S59) shareholders for doubting their decision to hold, with the stock down 50% over a half decade. Check out our latest analysis for SIA Engineering To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years over which the share price declined, SIA Engineering's earnings per share (EPS) dropped by 9.6% each year. This reduction in EPS is less than the 13% annual reduction in the share price. This implies that the market is more cautious about the business these days. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It might be well worthwhile taking a look at ourfreereport on SIA Engineering's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for SIA Engineering the TSR over the last 5 years was -39%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Investors in SIA Engineering had a tough year, with a total loss of 17% (including dividends), against a market gain of about 5.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9.4% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before forming an opinion on SIA Engineering you might want to consider the cold hard cash it pays as a dividend. Thisfreechart tracks its dividend over time. But note:SIA Engineering may not be the best stock to buy. So take a peek at thisfreelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SG exchanges. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Midsommar cast sat in stunned silence after first viewing of horror film Ari Aster ’s follow-up to Hereditary , the phantasmagorical horror movie Midsommar , is likely to leave a lot of people speechless. Certainly it had that effect on the cast when they first saw the film earlier this month — and they, of course, knew what was coming. “Tough! F—in’ tough!” actor Jack Reynor says when EW asks about his experience of seeing the movie. “We watched it as a cast together in New York. We all laughed through the first two-thirds of the film, at all that gallows humor, and then for the final third of the film, all of us were silent. When the credits rolled, there was no ‘High-five! You did an amazing job! Oh my God, you’re so good in the film!’ It was just silence. All of us sat there with our heads in our hands. It was a good 10 minutes of not talking.” He adds, “It’s a hard one to digest, and there’s a lot unpack in it. But that’s the kind of sh— that it’s worth doing. Last time I got that feeling watching a film was when I watched In the Realm of the Senses , the Nagisa Oshima [film]. That f—ed me up too. So it was the same kind of feeling — just heaviness. But you’re watching something that has been meticulously designed to create that feeling in you.” Midsommar stars Reynor and Florence Pugh as an American couple, Christian and Dani, who embark on a trip to Scandinavia with friends Mark (Will Poulter), Josh (William Jackson Harper), and Pelle (Vilhelm Blomgren), the latter of whom has invited them to visit his remote village in Sweden. “They’re a really weird, culty kind of commune,” Reynor told EW earlier this year . “Everybody’s all dressed in white, they have strange kinds of social cliques.” Midsommar opens July 3. Related content: Midsommar actors had to walk through woods as part of unusual audition process Hereditary director teases ‘horrors’ of new film Midsommar Jordan Peele talks Midsommar with director Ari Aster in new Fangoria
Why I Like Weichai Power Co., Ltd. (HKG:2338) Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! I've been keeping an eye on Weichai Power Co., Ltd. (HKG:2338) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 2338 has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the fullreport on Weichai Power here. In the previous year, 2338 has ramped up its bottom line by 24%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, 2338 also outperformed its industry, which delivered a growth of 19%. This is what investors like to see! 2338's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 2338's has produced operating cash levels of 0.79x total debt over the past year, which implies that 2338's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. For those seeking income streams from their portfolio, 2338 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.0%. For Weichai Power, I've put together three important aspects you should further examine: 1. Future Outlook: What are well-informed industry analysts predicting for 2338’s future growth? Take a look at ourfree research report of analyst consensusfor 2338’s outlook. 2. Valuation: What is 2338 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether 2338 is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 2338? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Goldman Sachs Eyes the Blockchain, Crypto Community Yawns Goldman Sachsisreportedlymore interested in the blockchain than ever, with in-depth research going into the concept of tokenization. The firm wants in on the decentralized ledger goods now all of a sudden. Let’s not get off the rails. This is a good thing. If only the blockchain had existed for decades, not years, it might have prevented a lot of the silliness that led to the 2008 financial crisis. Goldmanplayed their role in all that. But Goldman Sachs regaining their interest in blockchain, this isn’t what we mean when we talk about institutions coming in by the dozen. This is nothing at all by comparison to the expectations people have these days. People might get surprised if you say you’ve got 10 banks coming together to support this or that cryptocurrency or blockchain project. Read the full story on CCN.com.
These Fundamentals Make Weichai Power Co., Ltd. (HKG:2338) Truly Worth Looking At Want to participate in ashort research study? Help shape the future of investing tools and you could win a $250 gift card! As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Weichai Power Co., Ltd. (HKG:2338), it is a financially-healthy , dividend-paying company with a a strong track record of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the fullreport on Weichai Power here. In the previous year, 2338 has ramped up its bottom line by 24%, with its latest earnings level surpassing its average level over the last five years. Not only did 2338 outperformed its past performance, its growth also exceeded the Machinery industry expansion, which generated a 19% earnings growth. This paints a buoyant picture for the company. 2338 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 2338 manages its cash and cost levels well, which is an important determinant of the company’s health. 2338 appears to have made good use of debt, producing operating cash levels of 0.79x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. Income investors would also be happy to know that 2338 is a great dividend company, with a current yield standing at 4.0%. 2338 has also been regularly increasing its dividend payments to shareholders over the past decade. For Weichai Power, I've put together three key factors you should further research: 1. Future Outlook: What are well-informed industry analysts predicting for 2338’s future growth? Take a look at ourfree research report of analyst consensusfor 2338’s outlook. 2. Valuation: What is 2338 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? Theintrinsic value infographic in our free research reporthelps visualize whether 2338 is currently mispriced by the market. 3. Other Attractive Alternatives: Are there other well-rounded stocks you could be holding instead of 2338? Exploreour interactive list of stocks with large potentialto get an idea of what else is out there you may be missing! We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.If you spot an error that warrants correction, please contact the editor ateditorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Theranos founder Elizabeth Holmes, top deputy ordered to stand trial in 2020 By Dan Whitcomb LOS ANGELES (Reuters) - Theranos founder Elizabeth Holmes and her former second-in-command at the Silicon Valley blood-testing startup were ordered on Friday to stand trial next year on fraud charges stemming from their claims about the company's technology, court documents show. During a hearing in federal court in San Jose, California, U.S. District Judge Edward Davila set jury selection to begin in the trial of Holmes, 35, and former Theranos President Ramesh "Sunny" Balwani, on July 28, 2020, according to minutes of the proceedings. Davila ordered the trial to begin in August 2020. It was expected to last three months. Holmes and Balwani, 54, were indicted in June 2018 on 11 counts of conspiracy and wire fraud. They have pleaded not guilty. Prosecutors say Holmes and Balwani engaged in a pair of schemes to defraud investors, doctors and patients with claims that Theranos had developed a revolutionary new blood testing system. Holmes and Balwani are accused of using advertising and solicitations to encourage doctors and patients to use the company's testing laboratory services even though they knew it could not produce accurate and reliable results consistently. Holmes, a Stanford University dropout who started Theranos at age 19, was celebrated as a rising star of Silicon Valley. In 2015, Forbes magazine anointed her America's youngest self-made female billionaire. Balwani joined Theranos in 2009 and ran day-to-day operations until 2016. Questions were first raised about the accuracy and reliability of her signature blood-testing device in a series of articles in the Wall Street Journal in 2015. This touched off a string of state and federal investigations into the company. In March of 2018 Holmes settled civil fraud charges brought by the U.S. Securities and Exchange Commission under which she was barred from serving as an officer or director of a public company for 10 years. (Reporting by Dan Whitcomb in Los Angeles; Editing by Tom Brown)
Is Kerry Properties Limited (HKG:683) An Attractive Dividend Stock? Want to participate in a short research study ? Help shape the future of investing tools and you could win a $250 gift card! Is Kerry Properties Limited ( HKG:683 ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be highly rewarding in the long term. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With Kerry Properties yielding 4.1% and having paid a dividend for over 10 years, many investors likely find the company quite interesting. It would not be a surprise to discover that many investors buy it for the dividends. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis SEHK:683 Historical Dividend Yield, June 29th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 26% of Kerry Properties's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Kerry Properties paid out 12% of its free cash flow as dividends last year, which is conservative and suggests the dividend is sustainable. It's positive to see that Kerry Properties's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Story continues Remember, you can always get a snapshot of Kerry Properties's latest financial position, by checking our visualisation of its financial health . Dividend Volatility One of the major risks of relying on dividend income, is the potential for a company to struggle financially and cut its dividend. Not only is your income cut, but the value of your investment declines as well - nasty. For the purpose of this article, we only scrutinise the last decade of Kerry Properties's dividend payments. During this period the dividend has been stable, which could imply the business could have relatively consistent earnings power. During the past ten-year period, the first annual payment was HK$0.70 in 2009, compared to HK$1.35 last year. This works out to be a compound annual growth rate (CAGR) of approximately 6.8% a year over that time. Businesses that can grow their dividends at a decent rate and maintain a stable payout can generate substantial wealth for shareholders over the long term. Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. Kerry Properties's earnings per share have been essentially flat over the past five years. Flat earnings per share are acceptable for a time, but over the long term, the purchasing power of the company's dividends could be eroded by inflation. Kerry Properties is paying out less than half of its earnings, which we like. Earnings per share growth have grown slowly, which is not great, but if the retained earnings can be reinvested effectively, future growth may be stronger. Conclusion To summarise, shareholders should always check that Kerry Properties's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. It's great to see that Kerry Properties is paying out a low percentage of its earnings and cash flow. Second, earnings growth has been mediocre, but at least the dividends have been relatively stable. All things considered, Kerry Properties looks like a strong prospect. At the right valuation, it could be something special. Earnings growth generally bodes well for the future value of company dividend payments. See if the 11 Kerry Properties analysts we track are forecasting continued growth with our free report on analyst estimates for the company . Looking for more high-yielding dividend ideas? Try our curated list of dividend stocks with a yield above 3%. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
Is Trimble Inc. (TRMB) A Good Stock To Buy? World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them. Trimble Inc. (NASDAQ:TRMB)was in 14 hedge funds' portfolios at the end of March. TRMB shareholders have witnessed a decrease in activity from the world's largest hedge funds of late. There were 17 hedge funds in our database with TRMB positions at the end of the previous quarter. Our calculations also showed that TRMB isn't among the30 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 analyze the new hedge fund action regarding Trimble Inc. (NASDAQ:TRMB). At Q1's end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -18% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in TRMB over the last 15 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions). Among these funds,Impax Asset Managementheld the most valuable stake in Trimble Inc. (NASDAQ:TRMB), which was worth $246 million at the end of the first quarter. On the second spot was Select Equity Group which amassed $192.1 million worth of shares. Moreover, D E Shaw, PDT Partners, and Millennium Management were also bullish on Trimble Inc. (NASDAQ:TRMB), allocating a large percentage of their portfolios to this stock. Because Trimble Inc. (NASDAQ:TRMB) has experienced declining sentiment from the entirety of the hedge funds we track, it's safe to say that there is a sect of fund managers who sold off their full holdings in the third quarter. At the top of the heap, Jim Simons'sRenaissance Technologiessold off the biggest position of the "upper crust" of funds watched by Insider Monkey, totaling close to $4.2 million in stock, and Ray Dalio's Bridgewater Associates was right behind this move, as the fund said goodbye to about $2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds in the third quarter. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Trimble Inc. (NASDAQ:TRMB) but similarly valued. We will take a look at Shaw Communications Inc (NYSE:SJR), Iron Mountain Incorporated (NYSE:IRM), Sociedad Química y Minera de Chile S.A. (NYSE:SQM), and FMC Corporation (NYSE:FMC). This group of stocks' market values are similar to TRMB's market value. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SJR,12,275762,-2 IRM,18,149930,7 SQM,9,41684,1 FMC,29,1271678,-3 Average,17,434764,0.75 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $435 million. That figure was $573 million in TRMB's case. FMC Corporation (NYSE:FMC) is the most popular stock in this table. On the other hand Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is the least popular one with only 9 bullish hedge fund positions. Trimble Inc. (NASDAQ:TRMB) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on TRMB as the stock returned 8% during the same time frame and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been More Bullish On Douglas Emmett, Inc. (DEI) Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat the S&P 500 Index ETF by more than 6 percentage points so far this year. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at Douglas Emmett, Inc. (NYSE:DEI) from the perspective of those elite funds. Douglas Emmett, Inc. (NYSE:DEI)was in 14 hedge funds' portfolios at the end of March. DEI investors should be aware of an increase in support from the world's most elite money managers of late. There were 12 hedge funds in our database with DEI holdings at the end of the previous quarter. Our calculations also showed that DEI isn't among the30 most popular stocks among hedge funds. In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to. Let's review the fresh hedge fund action surrounding Douglas Emmett, Inc. (NYSE:DEI). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from one quarter earlier. On the other hand, there were a total of 10 hedge funds with a bullish position in DEI a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves. More specifically,Renaissance Technologieswas the largest shareholder of Douglas Emmett, Inc. (NYSE:DEI), with a stake worth $165.4 million reported as of the end of March. Trailing Renaissance Technologies was AEW Capital Management, which amassed a stake valued at $82.2 million. Zimmer Partners, Millennium Management, and D E Shaw were also very fond of the stock, giving the stock large weights in their portfolios. As aggregate interest increased, key money managers were breaking ground themselves.Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the largest position in Douglas Emmett, Inc. (NYSE:DEI). Two Sigma Advisors had $1.3 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle'sSpringbok Capitalalso made a $0.8 million investment in the stock during the quarter. The following funds were also among the new DEI investors: Michael Gelband'sExodusPoint Capital, David Harding'sWinton Capital Management, and Matthew Hulsizer'sPEAK6 Capital Management. Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Douglas Emmett, Inc. (NYSE:DEI) but similarly valued. We will take a look at Nordstrom, Inc. (NYSE:JWN), Nutanix, Inc. (NASDAQ:NTNX), Foot Locker, Inc. (NYSE:FL), and KAR Auction Services Inc (NYSE:KAR). All of these stocks' market caps are similar to DEI's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JWN,26,283069,3 NTNX,36,456099,-1 FL,35,956263,0 KAR,42,1234048,8 Average,34.75,732370,2.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 34.75 hedge funds with bullish positions and the average amount invested in these stocks was $732 million. That figure was $363 million in DEI's case. KAR Auction Services Inc (NYSE:KAR) is the most popular stock in this table. On the other hand Nordstrom, Inc. (NYSE:JWN) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks Douglas Emmett, Inc. (NYSE:DEI) is even less popular than JWN. Hedge funds dodged a bullet by taking a bearish stance towards DEI. Our calculations showed that the top 20 most popular hedge fund stocks returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately DEI wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); DEI investors were disappointed as the stock returned 3.4% during the same time frame and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out thetop 20 most popular stocksamong hedge funds as 13 of these stocks already outperformed the market so far in the second quarter. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index
Hedge Funds Have Never Been This Bullish On Guardant Health, Inc. (GH) World-class money managers like Ken Griffin and Barry Rosenstein only invest their wealthy clients' money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It's not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It's also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them. Guardant Health, Inc. (NASDAQ:GH)has experienced an increase in support from the world's most elite money managers of late. Our calculations also showed that GH isn't among the30 most popular stocks among hedge funds. So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter. Even if you aren't comfortable with shorting stocks, you should at least avoid initiating long positions in our short portfolio. Let's analyze the recent hedge fund action surrounding Guardant Health, Inc. (NASDAQ:GH). Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of 100% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in GH a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions). The largest stake in Guardant Health, Inc. (NASDAQ:GH) was held byOrbiMed Advisors, which reported holding $117.7 million worth of stock at the end of March. It was followed by Rock Springs Capital Management with a $13.8 million position. Other investors bullish on the company included Hitchwood Capital Management, Pura Vida Investments, and Citadel Investment Group. With a general bullishness amongst the heavyweights, specific money managers were leading the bulls' herd.Hitchwood Capital Management, managed by James Crichton, assembled the most valuable position in Guardant Health, Inc. (NASDAQ:GH). Hitchwood Capital Management had $10 million invested in the company at the end of the quarter. Ken Griffin'sCitadel Investment Groupalso initiated a $7.1 million position during the quarter. The other funds with new positions in the stock are Brad Farber'sAtika Capital, Anand Parekh'sAlyeska Investment Group, and David Costen Haley'sHBK Investments. Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Guardant Health, Inc. (NASDAQ:GH) but similarly valued. These stocks are HubSpot Inc (NYSE:HUBS), Arrow Electronics, Inc. (NYSE:ARW), Perrigo Company plc (NYSE:PRGO), and American Campus Communities, Inc. (NYSE:ACC). This group of stocks' market caps resemble GH's market cap. [table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HUBS,29,621767,7 ARW,22,472588,1 PRGO,18,662267,-5 ACC,19,322439,3 Average,22,519765,1.5 [/table] View table hereif you experience formatting issues. As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $520 million. That figure was $175 million in GH's case. HubSpot Inc (NYSE:HUBS) is the most popular stock in this table. On the other hand Perrigo Company plc (NYSE:PRGO) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Guardant Health, Inc. (NASDAQ:GH) is even less popular than PRGO. Hedge funds clearly dropped the ball on GH as the stock delivered strong returns, though hedge funds' consensus picks still generated respectable returns. Our calculations showed thattop 20 most popular stocksamong hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on GH as the stock returned 16.7% during the same period and outperformed the market by an even larger margin. Disclosure: None. This article was originally published atInsider Monkey. Related Content • How to Best Use Insider Monkey To Increase Your Returns • Billionaire Ken Fisher’s Top Dividend Stock Picks • 30 Stocks Billionaires Are Crazy About: Insider Monkey Billionaire Stock Index

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