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 CorMedix Inc. (NYSE:CRMD).
CorMedix Inc. (NYSE:CRMD) has experienced a decrease in enthusiasm from smart money in recent months. Our calculations also showed that CRMD isn't among the 30 most popular stocks among hedge funds (click for Q1 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.
In today’s marketplace there are tons of gauges stock traders use to evaluate their stock investments. Two of the most underrated gauges are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the best hedge fund managers can outclass the S&P 500 by a significant margin (see the details here).
[caption id="attachment_26345" align="aligncenter" width="400"] Paul Singer of Elliott Management[/caption]
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, legendary investor Bill Miller told investors to sell 7 extremely popular recession stocks last month. So, we went through his list and recommended another stock with 100% upside potential instead. We interview hedge fund managers and ask them about their best ideas. You can watch our latest hedge fund manager interview here and find out the name of the large-cap healthcare stock that Sio Capital's Michael Castor expects to double. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we're going to take a look at the new hedge fund action regarding CorMedix Inc. (NYSE:CRMD).
How are hedge funds trading CorMedix Inc. (NYSE:CRMD)?
Heading into the second quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -50% from the fourth quarter of 2019. By comparison, 5 hedge funds held shares or bullish call options in CRMD a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
More specifically, Elliott Management was the largest shareholder of CorMedix Inc. (NYSE:CRMD), with a stake worth $3 million reported as of the end of September. Trailing Elliott Management was Renaissance Technologies, which amassed a stake valued at $0.5 million. Citadel Investment Group was also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Elliott Management allocated the biggest weight to CorMedix Inc. (NYSE:CRMD), around 0.06% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, setting aside 0.0004 percent of its 13F equity portfolio to CRMD.
Judging by the fact that CorMedix Inc. (NYSE:CRMD) has witnessed declining sentiment from hedge fund managers, it's easy to see that there exists a select few hedge funds who sold off their full holdings heading into Q4. At the top of the heap, D. E. Shaw's D E Shaw cut the biggest position of all the hedgies followed by Insider Monkey, valued at close to $0.2 million in stock. Michael Gelband's fund, ExodusPoint Capital, also said goodbye to its stock, about $0.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 3 funds heading into Q4.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as CorMedix Inc. (NYSE:CRMD) but similarly valued. These stocks are Titan International Inc (NYSE:TWI), Asure Software Inc (NASDAQ:ASUR), Denbury Resources Inc. (NYSE:DNR), and Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL). All of these stocks' market caps resemble CRMD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TWI,7,23029,-4 ASUR,9,17525,0 DNR,8,486,-4 PANL,2,59,0 Average,6.5,10275,-2 [/table]
View table here if 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 $10 million. That figure was $4 million in CRMD's case. Asure Software Inc (NASDAQ:ASUR) is the most popular stock in this table. On the other hand Pangaea Logistics Solutions, Ltd. (NASDAQ:PANL) is the least popular one with only 2 bullish hedge fund positions. CorMedix Inc. (NYSE:CRMD) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 7.9% in 2020 through May 22nd and still beat the market by 15.6 percentage points. A small number of hedge funds were also right about betting on CRMD as the stock returned 22% during the second quarter and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.