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Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors' consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Actinium Pharmaceuticals Inc (NYSE:ATNM).
Is Actinium Pharmaceuticals (ATNM) a good stock to buy now? ATNM investors should pay attention to a decrease in enthusiasm from smart money recently. Actinium Pharmaceuticals Inc (NYSE:ATNM) was in 6 hedge funds' portfolios at the end of the third quarter of 2020. The all time high for this statistics is 7. Our calculations also showed that ATNM isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
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 S&P 500 ETFs by 66 percentage points since March 2017 (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.
Michael Castor of Sio Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Now we're going to take a gander at the key hedge fund action surrounding Actinium Pharmaceuticals Inc (NYSE:ATNM).
What have hedge funds been doing with Actinium Pharmaceuticals Inc (NYSE:ATNM)?
Heading into the fourth quarter of 2020, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of -14% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards ATNM over the last 21 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.
According to Insider Monkey's hedge fund database, Mitchell Blutt's Consonance Capital Management has the number one position in Actinium Pharmaceuticals Inc (NYSE:ATNM), worth close to $7.7 million, comprising 0.9% of its total 13F portfolio. The second most bullish fund manager is Sio Capital, managed by Michael Castor, which holds a $1.8 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism contain David Rosen's Rubric Capital Management, Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital and Ken Griffin's Citadel Investment Group. In terms of the portfolio weights assigned to each position Consonance Capital Management allocated the biggest weight to Actinium Pharmaceuticals Inc (NYSE:ATNM), around 0.94% of its 13F portfolio. Sio Capital is also relatively very bullish on the stock, dishing out 0.36 percent of its 13F equity portfolio to ATNM.
Because Actinium Pharmaceuticals Inc (NYSE:ATNM) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there were a few fund managers that slashed their entire stakes heading into Q4. At the top of the heap, Renaissance Technologies dumped the biggest investment of the "upper crust" of funds tracked by Insider Monkey, totaling close to $1.3 million in stock. Hal Mintz's fund, Sabby Capital, also dumped its stock, about $0.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 1 funds heading into Q4.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Actinium Pharmaceuticals Inc (NYSE:ATNM) but similarly valued. We will take a look at Minerva Neurosciences, Inc (NASDAQ:NERV), Genprex, Inc. (NASDAQ:GNPX), AgEagle Aerial Systems, Inc. (NYSE:UAVS), Atento SA (NYSE:ATTO), Intevac, Inc. (NASDAQ:IVAC), Alithya Group inc. (NASDAQ:ALYA), and Auburn National Bancorporation, Inc. (NASDAQ:AUBN). This group of stocks' market caps are closest to ATNM's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NERV,15,11835,1 GNPX,2,311,-1 UAVS,3,370,2 ATTO,5,13150,-1 IVAC,6,15293,0 ALYA,4,8460,0 AUBN,1,234,0 Average,5.1,7093,0.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.1 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $11 million in ATNM's case. Minerva Neurosciences, Inc (NASDAQ:NERV) is the most popular stock in this table. On the other hand Auburn National Bancorporation, Inc. (NASDAQ:AUBN) is the least popular one with only 1 bullish hedge fund positions. Actinium Pharmaceuticals Inc (NYSE:ATNM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ATNM is 47.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. Hedge funds were also right about betting on ATNM as the stock returned 15.5% since the end of Q3 (through 11/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.