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The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider SGOCO Group Ltd (NASDAQ:SGOC) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
Is SGOC a good stock to buy? SGOCO Group Ltd (NASDAQ:SGOC) investors should pay attention to an increase in hedge fund interest recently. SGOCO Group Ltd (NASDAQ:SGOC) was in 3 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 1. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 1 hedge funds in our database with SGOC positions at the end of the fourth quarter. Our calculations also showed that SGOC isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the eyes of most stock holders, hedge funds are viewed as worthless, outdated investment tools of yesteryear. While there are greater than 8000 funds trading at present, We hone in on the top tier of this group, around 850 funds. These investment experts watch over bulk of the smart money's total asset base, and by watching their best equity investments, Insider Monkey has spotted various investment strategies that have historically defeated the broader indices. Insider Monkey's flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter's portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Israel Englander of Millennium Management
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. With all of this in mind let's review the recent hedge fund action surrounding SGOCO Group Ltd (NASDAQ:SGOC).
Do Hedge Funds Think SGOC Is A Good Stock To Buy Now?
At Q1's end, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 200% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards SGOC over the last 23 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Renaissance Technologies held the most valuable stake in SGOCO Group Ltd (NASDAQ:SGOC), which was worth $0.1 million at the end of the fourth quarter. On the second spot was Millennium Management which amassed $0.1 million worth of shares. Citadel Investment Group 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 Renaissance Technologies allocated the biggest weight to SGOCO Group Ltd (NASDAQ:SGOC), around 0.0002% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, dishing out 0 percent of its 13F equity portfolio to SGOC.
As industrywide interest jumped, key money managers were leading the bulls' herd. Millennium Management, managed by Israel Englander, created the largest position in SGOCO Group Ltd (NASDAQ:SGOC). Millennium Management had $0.1 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also initiated a $0.1 million position during the quarter.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as SGOCO Group Ltd (NASDAQ:SGOC) but similarly valued. These stocks are Western New England Bancorp, Inc. (NASDAQ:WNEB), Capital Product Partners L.P. (NASDAQ:CPLP), Weyco Group, Inc. (NASDAQ:WEYS), Hycroft Mining Holding Corporation (NASDAQ:HYMC), Wrap Technologies, Inc. (NASDAQ:WRAP), International Tower Hill Mines Ltd (NYSE:THM), and Savara, Inc. (NASDAQ:SVRA). This group of stocks' market values are closest to SGOC's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position WNEB,5,21557,2 CPLP,5,2521,3 WEYS,2,1513,1 HYMC,18,192969,0 WRAP,4,2809,0 THM,4,108655,-1 SVRA,10,29388,3 Average,6.9,51345,1.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 6.9 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $0 million in SGOC's case. Hycroft Mining Holding Corporation (NASDAQ:HYMC) is the most popular stock in this table. On the other hand Weyco Group, Inc. (NASDAQ:WEYS) is the least popular one with only 2 bullish hedge fund positions. SGOCO Group Ltd (NASDAQ:SGOC) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SGOC is 40.1. 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 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 surpassed the market again by 3.3 percentage points. Unfortunately SGOC wasn't nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); SGOC investors were disappointed as the stock returned 4.3% since the end of March (through 6/11) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Disclosure: None. This article was originally published at Insider Monkey.