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 Envision Solar International, Inc. (NASDAQ:EVSI).
Is Envision Solar International, Inc. (NASDAQ:EVSI) ready to rally soon? Hedge funds are getting more bullish. The number of long hedge fund bets increased by 1 lately. Our calculations also showed that EVSI 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 the financial world there are many signals stock traders have at their disposal to grade publicly traded companies. A duo of the most useful signals are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top fund managers can beat the S&P 500 by a significant amount (see the details here).
[caption id="attachment_26340" align="aligncenter" width="400"] Ken Griffin of Citadel Investment Group[/caption]
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020's unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. 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 the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we're going to check out the latest hedge fund action regarding Envision Solar International, Inc. (NASDAQ:EVSI).
What does smart money think about Envision Solar International, Inc. (NASDAQ:EVSI)?
At the end of the first quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from one quarter earlier. On the other hand, there were a total of 1 hedge funds with a bullish position in EVSI a year ago. With hedge funds' capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey's hedge fund database, Arosa Capital Management, managed by Till Bechtolsheimer, holds the most valuable position in Envision Solar International, Inc. (NASDAQ:EVSI). Arosa Capital Management has a $1.3 million position in the stock, comprising 0.2% of its 13F portfolio. The second most bullish fund manager is Till Bechtolsheimer of Arosa Capital Management, with a $1.3 million position; 0.2% of its 13F portfolio is allocated to the company. Other peers that are bullish comprise Renaissance Technologies, Sander Gerber's Hudson Bay Capital Management and Ken Griffin's Citadel Investment Group. In terms of the portfolio weights assigned to each position Arosa Capital Management allocated the biggest weight to Envision Solar International, Inc. (NASDAQ:EVSI), around 0.15% of its 13F portfolio. Arosa Capital Management is also relatively very bullish on the stock, dishing out 0.15 percent of its 13F equity portfolio to EVSI.
Now, specific money managers have jumped into Envision Solar International, Inc. (NASDAQ:EVSI) headfirst. Renaissance Technologies, initiated the biggest position in Envision Solar International, Inc. (NASDAQ:EVSI). Renaissance Technologies had $0.3 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also made a $0.1 million investment in the stock during the quarter.
Let's now review hedge fund activity in other stocks similar to Envision Solar International, Inc. (NASDAQ:EVSI). These stocks are Soligenix, Inc. (NASDAQ:SNGX), Synacor Inc (NASDAQ:SYNC), Vuzix Corporation (NASDAQ:VUZI), and Iterum Therapeutics plc (NASDAQ:ITRM). All of these stocks' market caps match EVSI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SNGX,3,2246,1 SYNC,4,6128,-2 VUZI,1,99,-3 ITRM,1,4169,0 Average,2.25,3161,-1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.25 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $3 million in EVSI's case. Synacor Inc (NASDAQ:SYNC) is the most popular stock in this table. On the other hand Vuzix Corporation (NASDAQ:VUZI) is the least popular one with only 1 bullish hedge fund positions. Envision Solar International, Inc. (NASDAQ:EVSI) 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 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 8.3% in 2020 through the end of May but beat the market by 13.2 percentage points. Unfortunately EVSI wasn't nearly as popular as these 10 stocks and hedge funds that were betting on EVSI were disappointed as the stock returned 5.1% 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 the top 10 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.