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We at Insider Monkey have gone over 866 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st. In this article, we look at what those funds think of Good Times Restaurants Inc. (NASDAQ:GTIM) based on that data.
Is Good Times Restaurants Inc. (NASDAQ:GTIM) the right investment to pursue these days? Hedge funds were becoming hopeful. The number of bullish hedge fund bets inched up by 1 lately. Good Times Restaurants Inc. (NASDAQ:GTIM) was in 3 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. Our calculations also showed that GTIM isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 2 hedge funds in our database with GTIM holdings at the end of December.
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Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $26 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we're going to take a peek at the recent hedge fund action encompassing Good Times Restaurants Inc. (NASDAQ:GTIM).
Do Hedge Funds Think GTIM Is A Good Stock To Buy Now?
At Q1's end, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from one quarter earlier. By comparison, 2 hedge funds held shares or bullish call options in GTIM 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, Renaissance Technologies was the largest shareholder of Good Times Restaurants Inc. (NASDAQ:GTIM), with a stake worth $2.5 million reported as of the end of March. Trailing Renaissance Technologies was Manatuck Hill Partners, which amassed a stake valued at $0.1 million. Citadel Investment Group was 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 Manatuck Hill Partners allocated the biggest weight to Good Times Restaurants Inc. (NASDAQ:GTIM), around 0.02% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.0031 percent of its 13F equity portfolio to GTIM.
As industrywide interest jumped, key money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, established the biggest position in Good Times Restaurants Inc. (NASDAQ:GTIM). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also initiated a $0.1 million position during the quarter.
Let's now take a look at hedge fund activity in other stocks similar to Good Times Restaurants Inc. (NASDAQ:GTIM). We will take a look at UTStarcom Holdings Corp (NASDAQ:UTSI), Ambow Education Holding Ltd. (NYSE:AMBO), Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI), William Penn Bancorporation (NASDAQ:WMPN), MDJM Ltd (NASDAQ:MDJH), AirNet Technology Inc. (NASDAQ:ANTE), and MV Oil Trust (NYSE:MVO). This group of stocks' market caps are similar to GTIM's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position UTSI,2,1858,0 AMBO,2,304,0 HJLI,3,3089,3 WMPN,2,4916,2 MDJH,2,164,2 ANTE,3,428,2 MVO,1,128,0 Average,2.1,1555,1.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.1 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $3 million in GTIM's case. Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI) is the most popular stock in this table. On the other hand MV Oil Trust (NYSE:MVO) is the least popular one with only 1 bullish hedge fund positions. Good Times Restaurants Inc. (NASDAQ:GTIM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GTIM is 71. 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 17.2% in 2021 through June 11th and beat the market again by 3.3 percentage points. Unfortunately GTIM wasn't nearly as popular as these 5 stocks and hedge funds that were betting on GTIM were disappointed as the stock returned 4.3% since the end of March (through 6/11) 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.