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Last year we predicted the arrival of the first US recession since 2009 and we told in advance that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Euronav NV (NYSE:EURN).
Euronav NV (NYSE:EURN) investors should pay attention to an increase in hedge fund sentiment of late. Euronav NV (NYSE:EURN) was in 17 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic is 33. Our calculations also showed that EURN isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Crispin Odey of Odey Asset Management Group
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Do Hedge Funds Think EURN Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 21% from the previous quarter. On the other hand, there were a total of 33 hedge funds with a bullish position in EURN 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.
According to Insider Monkey's hedge fund database, Renaissance Technologies has the largest position in Euronav NV (NYSE:EURN), worth close to $16.1 million, accounting for less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is QVT Financial, led by Daniel Gold, holding a $14.4 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions contain Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, Crispin Odey's Odey Asset Management Group and Anand Parekh's Alyeska Investment Group. In terms of the portfolio weights assigned to each position Amitell Capital allocated the biggest weight to Euronav NV (NYSE:EURN), around 2.39% of its 13F portfolio. Odey Asset Management Group is also relatively very bullish on the stock, designating 1.93 percent of its 13F equity portfolio to EURN.
As one would reasonably expect, key money managers were leading the bulls' herd. Hudson Bay Capital Management, managed by Sander Gerber, created the most valuable position in Euronav NV (NYSE:EURN). Hudson Bay Capital Management had $5.2 million invested in the company at the end of the quarter. Randall Smith's Alden Global Capital also made a $4.1 million investment in the stock during the quarter. The other funds with brand new EURN positions are D. E. Shaw's D E Shaw, Todd J. Kantor's Encompass Capital Advisors, and Mark Broach's Manatuck Hill Partners.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Euronav NV (NYSE:EURN) but similarly valued. We will take a look at Aurora Cannabis Inc. (NASDAQ:ACB), MFA Financial, Inc. (NYSE:MFA), Capitol Federal Financial, Inc. (NASDAQ:CFFN), SiTime Corporation (NASDAQ:SITM), Granite Construction Incorporated (NYSE:GVA), Newmark Group, Inc. (NASDAQ:NMRK), and Northwest Bancshares, Inc. (NASDAQ:NWBI). This group of stocks' market caps are closest to EURN's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ACB,12,48845,2 MFA,16,104285,-6 CFFN,12,89757,2 SITM,20,156794,9 GVA,13,29407,2 NMRK,21,193761,-1 NWBI,14,32740,5 Average,15.4,93656,1.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.4 hedge funds with bullish positions and the average amount invested in these stocks was $94 million. That figure was $93 million in EURN's case. Newmark Group, Inc. (NASDAQ:NMRK) is the most popular stock in this table. On the other hand Aurora Cannabis Inc. (NASDAQ:ACB) is the least popular one with only 12 bullish hedge fund positions. Euronav NV (NYSE:EURN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EURN is 51.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. 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 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.5% in 2021 through July 23rd and beat the market again by 10.1 percentage points. Unfortunately EURN wasn't nearly as popular as these 5 stocks and hedge funds that were betting on EURN were disappointed as the stock returned -6.9% since the end of March (through 7/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.