The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Senseonics Holdings, Inc. (NYSE:SENS).
Hedge fund interest in Senseonics Holdings, Inc. (NYSE:SENS) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare SENS to other stocks including RedHill Biopharma Ltd - ADR (NASDAQ:RDHL), Gold Resource Corporation (NYSE:GORO), and Northeast Bancorp (NASDAQ:NBN) to get a better sense of its popularity. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In today’s marketplace there are plenty of tools stock traders employ to size up publicly traded companies. Some of the most underrated tools are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the best fund managers can beat the market by a healthy margin (see the details here).
[caption id="attachment_261250" align="alignnone" width="600"] Peter Kolchinsky of RA Capital Management[/caption]
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world's largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, "I'm investing more today than I did back in early 2009." So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds' buy/sell signals. We're going to view the key hedge fund action encompassing Senseonics Holdings, Inc. (NYSE:SENS).
How are hedge funds trading Senseonics Holdings, Inc. (NYSE:SENS)?
At Q3's end, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. The graph below displays the number of hedge funds with bullish position in SENS over the last 17 quarters. With hedge funds' capital changing hands, there exists an "upper tier" of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Among these funds, RA Capital Management held the most valuable stake in Senseonics Holdings, Inc. (NYSE:SENS), which was worth $2.7 million at the end of the third quarter. On the second spot was Endurant Capital Management which amassed $1.5 million worth of shares. Millennium Management, Highbridge Capital Management, and Hudson Bay Capital Management were 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 Endurant Capital Management allocated the biggest weight to Senseonics Holdings, Inc. (NYSE:SENS), around 0.44% of its 13F portfolio. RA Capital Management is also relatively very bullish on the stock, setting aside 0.16 percent of its 13F equity portfolio to SENS.
Seeing as Senseonics Holdings, Inc. (NYSE:SENS) has witnessed declining sentiment from the entirety of the hedge funds we track, it's easy to see that there was a specific group of money managers that decided to sell off their full holdings last quarter. Intriguingly, Highbridge Capital Management cut the largest position of the "upper crust" of funds followed by Insider Monkey, comprising close to $19.4 million in stock, and Michael Castor's Sio Capital was right behind this move, as the fund dropped about $1.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's check out hedge fund activity in other stocks similar to Senseonics Holdings, Inc. (NYSE:SENS). We will take a look at RedHill Biopharma Ltd - ADR (NASDAQ:RDHL), Gold Resource Corporation (NYSE:GORO), Northeast Bancorp (NASDAQ:NBN), and Norwood Financial Corp. (NASDAQ:NWFL). All of these stocks' market caps are closest to SENS's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position RDHL,2,24590,0 GORO,6,5835,-2 NBN,6,38130,0 NWFL,2,2150,0 Average,4,17676,-0.5 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $6 million in SENS's case. Gold Resource Corporation (NYSE:GORO) is the most popular stock in this table. On the other hand RedHill Biopharma Ltd - ADR (NASDAQ:RDHL) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Senseonics Holdings, Inc. (NYSE:SENS) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately SENS wasn't nearly as popular as these 20 stocks and hedge funds that were betting on SENS were disappointed as the stock returned 5.2% during the first two months of the fourth quarter 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.