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The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards G. Willi-Food International Limited (NASDAQ:WILC).
G. Willi-Food International Limited (NASDAQ:WILC) shares haven't seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 3 hedge funds' portfolios at the end of the third quarter of 2020. Our calculations also showed that WILC isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Genius Brands International, Inc. (NASDAQ:GNUS), Cabaletta Bio, Inc. (NASDAQ:CABA), and NantHealth, Inc. (NASDAQ:NH) to gather more data points.
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 113% since March 2017 and outperformed the S&P 500 ETFs by more than 66 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.
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At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website. With all of this in mind let's review the new hedge fund action regarding G. Willi-Food International Limited (NASDAQ:WILC).
How are hedge funds trading G. Willi-Food International Limited (NASDAQ:WILC)?
Heading into the fourth quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. By comparison, 2 hedge funds held shares or bullish call options in WILC a year ago. With the smart money's capital changing hands, there exists a few key hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
Among these funds, Springhouse Capital Management held the most valuable stake in G. Willi-Food International Limited (NASDAQ:WILC), which was worth $15.6 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $13 million worth of shares. Noked Capital 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 Springhouse Capital Management allocated the biggest weight to G. Willi-Food International Limited (NASDAQ:WILC), around 23.46% of its 13F portfolio. Noked Capital is also relatively very bullish on the stock, dishing out 0.81 percent of its 13F equity portfolio to WILC.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren't any hedge funds dumping their holdings during the third quarter, there weren't any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven't identified any viable catalysts that can attract investor attention.
Let's now take a look at hedge fund activity in other stocks similar to G. Willi-Food International Limited (NASDAQ:WILC). These stocks are Genius Brands International, Inc. (NASDAQ:GNUS), Cabaletta Bio, Inc. (NASDAQ:CABA), NantHealth, Inc. (NASDAQ:NH), Northwest Pipe Company (NASDAQ:NWPX), Escalade, Inc. (NASDAQ:ESCA), InfuSystem Holdings, Inc. (NYSE:INFU), and Invacare Corporation (NYSE:IVC). This group of stocks' market caps resemble WILC's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GNUS,2,2021,-2 CABA,8,93137,-1 NH,5,3004,2 NWPX,10,35388,-3 ESCA,9,16436,1 INFU,12,33703,6 IVC,17,60394,-1 Average,9,34869,0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $30 million in WILC's case. Invacare Corporation (NYSE:IVC) is the most popular stock in this table. On the other hand Genius Brands International, Inc. (NASDAQ:GNUS) is the least popular one with only 2 bullish hedge fund positions. G. Willi-Food International Limited (NASDAQ:WILC) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for WILC is 38.3. 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 negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 28.1% in 2020 through November 23rd and surpassed the market again by 15.4 percentage points. Unfortunately WILC wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); WILC investors were disappointed as the stock returned -2.1% since the end of September (through 11/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.