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The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Urban One, Inc. (NASDAQ:UONEK) based on those filings.
Is UONEK stock a buy, sell, or hold? The smart money was taking an optimistic view. The number of bullish hedge fund bets increased by 1 recently. Urban One, Inc. (NASDAQ:UONEK) was in 4 hedge funds' portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. Our calculations also showed that UONEK 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. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.
Peter Algert of Algert Global
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 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. Now we're going to take a glance at the recent hedge fund action surrounding Urban One, Inc. (NASDAQ:UONEK).
Do Hedge Funds Think UONEK Is A Good Stock To Buy Now?
At Q1's end, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in UONEK over the last 23 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey's hedge fund database, Renaissance Technologies has the most valuable position in Urban One, Inc. (NASDAQ:UONEK), worth close to $1.2 million, comprising less than 0.1%% of its total 13F portfolio. On Renaissance Technologies's heels is Two Sigma Advisors, led by John Overdeck and David Siegel, holding a $0.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish include Ken Griffin's Citadel Investment Group, Israel Englander's Millennium Management and . In terms of the portfolio weights assigned to each position Two Sigma Advisors allocated the biggest weight to Urban One, Inc. (NASDAQ:UONEK), around 0.0016% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, setting aside 0.0015 percent of its 13F equity portfolio to UONEK.
As industrywide interest jumped, key money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, assembled the most valuable position in Urban One, Inc. (NASDAQ:UONEK). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter. Israel Englander's Millennium Management also initiated a $0 million position during the quarter.
Let's check out hedge fund activity in other stocks similar to Urban One, Inc. (NASDAQ:UONEK). We will take a look at Dolphin Entertainment, Inc. (NASDAQ:DLPN), Beasley Broadcast Group Inc (NASDAQ:BBGI), Streamline Health Solutions Inc. (NASDAQ:STRM), Issuer Direct Corporation (NYSE:ISDR), Key Tronic Corporation (NASDAQ:KTCC), United Bancshares Inc. (NASDAQ:UBOH), and WidePoint Corporation (NYSE:WYY). This group of stocks' market values resemble UONEK's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position DLPN,1,150,0 BBGI,2,3398,-1 STRM,5,23686,-2 ISDR,2,1646,0 KTCC,2,1743,-1 UBOH,1,7510,0 WYY,2,1466,-1 Average,2.1,5657,-0.7 [/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 $6 million. That figure was $2 million in UONEK's case. Streamline Health Solutions Inc. (NASDAQ:STRM) is the most popular stock in this table. On the other hand Dolphin Entertainment, Inc. (NASDAQ:DLPN) is the least popular one with only 1 bullish hedge fund positions. Urban One, Inc. (NASDAQ:UONEK) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for UONEK is 63.5. 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 UONEK as the stock returned 222.3% 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.