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 December 31. We at Insider Monkey have made an extensive database of nearly 750 of those elite funds and prominent investors' filings. In this article, we analyze how these elite funds and prominent investors traded ATN International, Inc. (NASDAQ:ATNI) based on those filings.
ATN International, Inc. (NASDAQ:ATNI) investors should pay attention to an increase in enthusiasm from smart money of late. Our calculations also showed that ATNI isn't among the 30 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 20.7% year to date (through March 12th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 32 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 review the new hedge fund action encompassing ATN International, Inc. (NASDAQ:ATNI).
Hedge fund activity in ATN International, Inc. (NASDAQ:ATNI)
At Q4's end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from the previous quarter. The graph below displays the number of hedge funds with bullish position in ATNI over the last 14 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.
When looking at the institutional investors followed by Insider Monkey, Jim Simons's Renaissance Technologies has the largest position in ATN International, Inc. (NASDAQ:ATNI), worth close to $43.3 million, amounting to less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Royce & Associates, led by Chuck Royce, holding a $11.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers with similar optimism encompass Martin Whitman's Third Avenue Management, David Harding's Winton Capital Management and D. E. Shaw's D E Shaw.
As one would reasonably expect, key hedge funds have been driving this bullishness. Winton Capital Management, managed by David Harding, initiated the biggest position in ATN International, Inc. (NASDAQ:ATNI). Winton Capital Management had $4.1 million invested in the company at the end of the quarter. Cliff Asness's AQR Capital Management also initiated a $0.6 million position during the quarter. The only other fund with a brand new ATNI position is Peter Muller's PDT Partners.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as ATN International, Inc. (NASDAQ:ATNI) but similarly valued. These stocks are Gibraltar Industries Inc (NASDAQ:ROCK), First Majestic Silver Corp (NYSE:AG), Bright Scholar Education Holdings Limited (NYSE:BEDU), and SRC Energy Inc. (NYSE:SRCI). All of these stocks' market caps are closest to ATNI's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ROCK,10,86045,-2 AG,10,12089,0 BEDU,8,90359,-2 SRCI,14,274876,-1 Average,10.5,115842,-1.25 [/table]
View table here if 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 $116 million. That figure was $73 million in ATNI's case. SRC Energy Inc. (NYSE:SRCI) is the most popular stock in this table. On the other hand Bright Scholar Education Holdings Limited (NYSE:BEDU) is the least popular one with only 8 bullish hedge fund positions. ATN International, Inc. (NASDAQ:ATNI) 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 that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Unfortunately ATNI wasn't nearly as popular as these 15 stock (hedge fund sentiment was quite bearish); ATNI investors were disappointed as the stock returned -16.6% and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 15 most popular stocks) among hedge funds as 13 of these stocks already outperformed the market this year.
Disclosure: None. This article was originally published at Insider Monkey.