The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. In this article we look at what those investors think of Energy Fuels Inc (NYSE:UUUU).
Is Energy Fuels Inc (NYSE:UUUU) ready to rally soon? The smart money is becoming hopeful. The number of bullish hedge fund positions improved by 1 in recent months. Our calculations also showed that UUUU 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 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 monthly stock picks returned 87% since March 2017 and outperformed the S&P 500 ETFs by more than 51 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_758446" align="aligncenter" width="400"] Michael Hintze of CQS Cayman LP[/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. With all of this in mind we're going to analyze the key hedge fund action encompassing Energy Fuels Inc (NYSE:UUUU).
What have hedge funds been doing with Energy Fuels Inc (NYSE:UUUU)?
At Q1's end, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from the fourth quarter of 2019. On the other hand, there were a total of 7 hedge funds with a bullish position in UUUU a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, CQS Cayman LP was the largest shareholder of Energy Fuels Inc (NYSE:UUUU), with a stake worth $0.5 million reported as of the end of September. Trailing CQS Cayman LP was Huber Capital Management, which amassed a stake valued at $0.5 million. Renaissance Technologies, Citadel Investment Group, and AQR Capital Management were 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 Huber Capital Management allocated the biggest weight to Energy Fuels Inc (NYSE:UUUU), around 0.08% of its 13F portfolio. CQS Cayman LP is also relatively very bullish on the stock, designating 0.04 percent of its 13F equity portfolio to UUUU.
As one would reasonably expect, key hedge funds have been driving this bullishness. Huber Capital Management, managed by Joe Huber, established the most outsized position in Energy Fuels Inc (NYSE:UUUU). Huber Capital Management had $0.5 million invested in the company at the end of the quarter. Renaissance Technologies also made a $0.2 million investment in the stock during the quarter.
Let's check out hedge fund activity in other stocks similar to Energy Fuels Inc (NYSE:UUUU). We will take a look at Permian Basin Royalty Trust (NYSE:PBT), Perion Network Ltd (NASDAQ:PERI), AXT Inc (NASDAQ:AXTI), and Baytex Energy Corp (NYSE:BTE). All of these stocks' market caps resemble UUUU's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PBT,3,1194,-4 PERI,7,21764,1 AXTI,7,10130,-1 BTE,6,2528,-6 Average,5.75,8904,-2.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.75 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $1 million in UUUU's case. Perion Network Ltd (NASDAQ:PERI) is the most popular stock in this table. On the other hand Permian Basin Royalty Trust (NYSE:PBT) is the least popular one with only 3 bullish hedge fund positions. Energy Fuels Inc (NYSE:UUUU) 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 8.3% in 2020 through the end of May and still beat the market by 13.2 percentage points. A small number of hedge funds were also right about betting on UUUU as the stock returned 45.8% during the second quarter and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.