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 Allied Motion Technologies, Inc. (NASDAQ:AMOT) based on those filings.
Is Allied Motion Technologies, Inc. (NASDAQ:AMOT) a good investment right now? Money managers are turning less bullish. The number of bullish hedge fund bets fell by 2 in recent months. Our calculations also showed that AMOT isn't among the 30 most popular stocks among hedge funds. AMOT was in 12 hedge funds' portfolios at the end of the fourth quarter of 2018. There were 14 hedge funds in our database with AMOT holdings 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 32 percentage points since May 2014 through March 12, 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 27.5% through March 12, 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 surrounding Allied Motion Technologies, Inc. (NASDAQ:AMOT).
How have hedgies been trading Allied Motion Technologies, Inc. (NASDAQ:AMOT)?
At Q4's end, a total of 12 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the second quarter of 2018. On the other hand, there were a total of 11 hedge funds with a bullish position in AMOT 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, Jim Simons's Renaissance Technologies has the number one position in Allied Motion Technologies, Inc. (NASDAQ:AMOT), worth close to $14.1 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is G2 Investment Partners Management, managed by Josh Goldberg, which holds a $13.4 million position; 5.6% of its 13F portfolio is allocated to the stock. Some other professional money managers with similar optimism consist of Noam Gottesman's GLG Partners, Cliff Asness's AQR Capital Management and Peter Algert and Kevin Coldiron's Algert Coldiron Investors.
Since Allied Motion Technologies, Inc. (NASDAQ:AMOT) has faced declining sentiment from the smart money, we can see that there was a specific group of hedge funds who sold off their entire stakes last quarter. It's worth mentioning that Paul Tudor Jones's Tudor Investment Corp dropped the largest position of the "upper crust" of funds watched by Insider Monkey, valued at close to $0.4 million in stock, and Frederick DiSanto's Ancora Advisors was right behind this move, as the fund said goodbye to about $0.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds last quarter.
Let's also examine hedge fund activity in other stocks similar to Allied Motion Technologies, Inc. (NASDAQ:AMOT). We will take a look at CIRCOR International, Inc. (NYSE:CIR), EZCORP Inc (NASDAQ:EZPW), Adams Natural Resources Fund, Inc. (NYSE:PEO), and Hingham Institution for Savings (NASDAQ:HIFS). This group of stocks' market values resemble AMOT's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CIR,6,98829,1 EZPW,20,106153,1 PEO,3,1894,1 HIFS,1,4627,0 Average,7.5,52876,0.75 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $39 million in AMOT's case. EZCORP Inc (NASDAQ:EZPW) is the most popular stock in this table. On the other hand Hingham Institution for Savings (NASDAQ:HIFS) is the least popular one with only 1 bullish hedge fund positions. Allied Motion Technologies, Inc. (NASDAQ:AMOT) 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 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 AMOT wasn't nearly as popular as these 15 stock and hedge funds that were betting on AMOT were disappointed as the stock returned -16.2% 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.