Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the fourth quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of MIND C.T.I. Ltd. (NASDAQ:MNDO) based on that data.
Is MNDO a good stock to buy? MIND C.T.I. Ltd. (NASDAQ:MNDO) investors should pay attention to an increase in enthusiasm from smart money of late. MIND C.T.I. Ltd. (NASDAQ:MNDO) was in 3 hedge funds' portfolios at the end of March. The all time high for this statistic is 4. There were 2 hedge funds in our database with MNDO positions at the end of the fourth quarter. Our calculations also showed that MNDO isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Jim Simons of Renaissance Technologies
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 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. Keeping this in mind let's check out the fresh hedge fund action encompassing MIND C.T.I. Ltd. (NASDAQ:MNDO).
Do Hedge Funds Think MNDO Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MNDO over the last 23 quarters. With hedgies' capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies has the biggest position in MIND C.T.I. Ltd. (NASDAQ:MNDO), worth close to $0.4 million, accounting for less than 0.1%% of its total 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which holds a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to MIND C.T.I. Ltd. (NASDAQ:MNDO), around 0.0006% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, earmarking 0 percent of its 13F equity portfolio to MNDO.
As industrywide interest jumped, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the largest position in MIND C.T.I. Ltd. (NASDAQ:MNDO). Millennium Management had $0 million invested in the company at the end of the quarter.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as MIND C.T.I. Ltd. (NASDAQ:MNDO) but similarly valued. We will take a look at NuZee, Inc. (NASDAQ:NUZE), 1847 Goedeker Inc. (NYSE:GOED), Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), Net Element Inc (PINK:NETE), Cyclo Therapeutics, Inc. (NASDAQ:CYTH), BK Technologies Corp. (NYSE:BKTI), and Harvest Capital Credit Corporation (NASDAQ:HCAP). This group of stocks' market values match MNDO's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NUZE,3,3560,3 GOED,1,127,1 RVPH,5,3854,2 NETE,2,324,-2 CYTH,1,141,-2 BKTI,1,2958,0 HCAP,2,728,0 Average,2.1,1670,0.3 [/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 $1 million in MNDO's case. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is the most popular stock in this table. On the other hand 1847 Goedeker Inc. (NYSE:GOED) is the least popular one with only 1 bullish hedge fund positions. MIND C.T.I. Ltd. (NASDAQ:MNDO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MNDO is 53.5. 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. 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 still beat the market by 3.3 percentage points. Hedge funds were also right about betting on MNDO as the stock returned 21.5% since the end of Q1 (through 6/11) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.