Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of March. At Insider Monkey, we follow nearly 750 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Grupo Supervielle S.A. (NYSE:SUPV), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Grupo Supervielle S.A. (NYSE:SUPV) shareholders have witnessed an increase in support from the world's most elite money managers recently. SUPV was in 12 hedge funds' portfolios at the end of the first quarter of 2019. There were 10 hedge funds in our database with SUPV positions at the end of the previous quarter. Our calculations also showed that supv 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 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 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.
[caption id="attachment_735677" align="aligncenter" width="473"] Sander Gerber of Hudson Bay Capital[/caption]
Let's check out the latest hedge fund action encompassing Grupo Supervielle S.A. (NYSE:SUPV).
How are hedge funds trading Grupo Supervielle S.A. (NYSE:SUPV)?
Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SUPV over the last 15 quarters. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
The largest stake in Grupo Supervielle S.A. (NYSE:SUPV) was held by Kora Management, which reported holding $14.6 million worth of stock at the end of March. It was followed by Hudson Bay Capital Management with a $5.2 million position. Other investors bullish on the company included Odey Asset Management Group, Highland Capital Management, and Millennium Management.
Now, specific money managers were leading the bulls' herd. D E Shaw, managed by D. E. Shaw, initiated the most outsized position in Grupo Supervielle S.A. (NYSE:SUPV). D E Shaw had $1.5 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also initiated a $0.3 million position during the quarter. The following funds were also among the new SUPV investors: Michael Platt and William Reeves's BlueCrest Capital Mgmt. and David Harding's Winton Capital Management.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Grupo Supervielle S.A. (NYSE:SUPV) but similarly valued. We will take a look at TORM plc (NASDAQ:TRMD), Textainer Group Holdings Limited (NYSE:TGH), Model N Inc (NYSE:MODN), and SunCoke Energy, Inc (NYSE:SXC). This group of stocks' market caps match SUPV's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRMD,4,388338,1 TGH,10,20500,3 MODN,16,101079,2 SXC,21,96805,4 Average,12.75,151681,2.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $33 million in SUPV's case. SunCoke Energy, Inc (NYSE:SXC) is the most popular stock in this table. On the other hand TORM plc (NASDAQ:TRMD) is the least popular one with only 4 bullish hedge fund positions. Grupo Supervielle S.A. (NYSE:SUPV) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on SUPV as the stock returned 16.9% during the same time frame and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.