A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Seanergy Maritime Holdings Corp. (NASDAQ:SHIP).
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) was in 3 hedge funds' portfolios at the end of September. SHIP has seen a decrease in support from the world's most elite money managers lately. There were 4 hedge funds in our database with SHIP holdings at the end of the previous quarter. Our calculations also showed that SHIP 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 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 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.
[caption id="attachment_26340" align="aligncenter" width="594"] Ken Griffin of Citadel Investment Group[/caption]
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. Let's take a look at the key hedge fund action regarding Seanergy Maritime Holdings Corp. (NASDAQ:SHIP).
What have hedge funds been doing with Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)?
At the end of the third quarter, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -25% from the previous quarter. On the other hand, there were a total of 1 hedge funds with a bullish position in SHIP a year ago. With hedge funds' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
According to Insider Monkey's hedge fund database, Sabby Capital, managed by Hal Mintz, holds the biggest position in Seanergy Maritime Holdings Corp. (NASDAQ:SHIP). Sabby Capital has a $0.6 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, with a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. In terms of the portfolio weights assigned to each position Sabby Capital allocated the biggest weight to Seanergy Maritime Holdings Corp. (NASDAQ:SHIP), around 0.31% of its portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.0001 percent of its 13F equity portfolio to SHIP.
Seeing as Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) has experienced a decline in interest from the aggregate hedge fund industry, it's easy to see that there exists a select few hedgies that slashed their positions entirely last quarter. At the top of the heap, Hal Mintz's Sabby Capital dropped the biggest stake of all the hedgies watched by Insider Monkey, valued at an estimated $1.5 million in stock. Sander Gerber's fund, Hudson Bay Capital Management, also dropped its stock, about $0.2 million worth. These transactions are interesting, as total hedge fund interest was cut by 1 funds last quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) but similarly valued. These stocks are Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRP), Sunworks, Inc. (NASDAQ:SUNW), Qualstar Corporation (NASDAQ:QBAK), and JMU Limited (NASDAQ:JMU). All of these stocks' market caps are closest to SHIP's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WHLRP,2,6649,2 SUNW,1,102,-1 QBAK,1,862,0 JMU,1,104,0 Average,1.25,1929,0.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 1.25 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $1 million in SHIP's case. Wheeler Real Estate Investment Trust, Inc. (NASDAQ:WHLRP) is the most popular stock in this table. On the other hand Sunworks, Inc. (NASDAQ:SUNW) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 34.7% in 2019 through November 22nd and outperformed the S&P 500 ETF (SPY) by 8.5 percentage points. Unfortunately SHIP wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SHIP were disappointed as the stock returned -2.1% during the fourth quarter (through 11/22) 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 70 percent of these stocks already outperformed the market in Q4.
Disclosure: None. This article was originally published at Insider Monkey.