Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds' recent losses in Facebook. Let’s take a closer look at what the funds we track think about Intersect ENT Inc (NASDAQ:XENT) in this article.
Is Intersect ENT Inc (NASDAQ:XENT) going to take off soon? The smart money is in a pessimistic mood. The number of long hedge fund positions dropped by 2 recently. Our calculations also showed that xent isn't among the 30 most popular stocks among hedge funds. XENT was in 20 hedge funds' portfolios at the end of the fourth quarter of 2018. There were 22 hedge funds in our database with XENT positions at the end of the previous quarter.
To the average investor there are a lot of metrics investors put to use to appraise stocks. Two of the most under-the-radar metrics are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the top fund managers can outclass the S&P 500 by a solid amount (see the details here).
We're going to go over the new hedge fund action regarding Intersect ENT Inc (NASDAQ:XENT).
What have hedge funds been doing with Intersect ENT Inc (NASDAQ:XENT)?
Heading into the first quarter of 2019, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the second quarter of 2018. On the other hand, there were a total of 24 hedge funds with a bullish position in XENT a year ago. With the smart money's capital changing hands, there exists an "upper tier" of key hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
Among these funds, Deerfield Management held the most valuable stake in Intersect ENT Inc (NASDAQ:XENT), which was worth $58.6 million at the end of the fourth quarter. On the second spot was Healthcor Management LP which amassed $47.5 million worth of shares. Moreover, Millennium Management, Point72 Asset Management, and Rock Springs Capital Management were also bullish on Intersect ENT Inc (NASDAQ:XENT), allocating a large percentage of their portfolios to this stock.
Seeing as Intersect ENT Inc (NASDAQ:XENT) has faced a decline in interest from the entirety of the hedge funds we track, it's safe to say that there was a specific group of funds that decided to sell off their entire stakes last quarter. Interestingly, Eric Bannasch's Cadian Capital dumped the largest investment of the 700 funds monitored by Insider Monkey, comprising an estimated $9.6 million in stock. Jim Simons's fund, Renaissance Technologies, also sold off its stock, about $2.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 2 funds last quarter.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Intersect ENT Inc (NASDAQ:XENT) but similarly valued. We will take a look at Methode Electronics Inc. (NYSE:MEI), Despegar.com, Corp. (NYSE:DESP), CTS Corporation (NYSE:CTS), and Oil States International, Inc. (NYSE:OIS). This group of stocks' market valuations resemble XENT's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MEI,7,68643,-4 DESP,19,199969,6 CTS,12,86244,2 OIS,10,21733,-1 Average,12,94147,0.75 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $94 million. That figure was $215 million in XENT's case. Despegar.com, Corp. (NYSE:DESP) is the most popular stock in this table. On the other hand Methode Electronics Inc. (NYSE:MEI) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Intersect ENT Inc (NASDAQ:XENT) is more popular among hedge funds. 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 XENT wasn't nearly as popular as these 15 stock and hedge funds that were betting on XENT were disappointed as the stock returned 4.3% 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.