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At Insider Monkey, we pore over the filings of nearly 817 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not VOXX International Corp (NASDAQ:VOXX) makes for a good investment right now.
Is VOXX a good stock to buy now? VOXX International Corp (NASDAQ:VOXX) has experienced an increase in hedge fund sentiment recently. VOXX International Corp (NASDAQ:VOXX) was in 7 hedge funds' portfolios at the end of the third quarter of 2020. The all time high for this statistics is 15. Our calculations also showed that VOXX isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
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 was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 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'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Matthew Hulsizer of PEAK6 Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 5 best cheap stocks to buy according to Ray Dalio to identify stocks with upside potential. 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 website. Keeping this in mind let's take a look at the key hedge fund action encompassing VOXX International Corp (NASDAQ:VOXX).
How are hedge funds trading VOXX International Corp (NASDAQ:VOXX)?
At the end of September, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in VOXX over the last 21 quarters. With the smart money's capital changing hands, there exists an "upper tier" of noteworthy hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Kahn Brothers, holds the biggest position in VOXX International Corp (NASDAQ:VOXX). Kahn Brothers has a $27.2 million position in the stock, comprising 5.1% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, with a $6.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism encompass Matthew Hulsizer's PEAK6 Capital Management, Frederick DiSanto's Ancora Advisors and John Overdeck and David Siegel's Two Sigma Advisors. In terms of the portfolio weights assigned to each position Kahn Brothers allocated the biggest weight to VOXX International Corp (NASDAQ:VOXX), around 5.15% of its 13F portfolio. Ancora Advisors is also relatively very bullish on the stock, earmarking 0.02 percent of its 13F equity portfolio to VOXX.
Now, some big names have jumped into VOXX International Corp (NASDAQ:VOXX) headfirst. Millennium Management, managed by Israel Englander, established the biggest position in VOXX International Corp (NASDAQ:VOXX). 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 check out hedge fund activity in other stocks similar to VOXX International Corp (NASDAQ:VOXX). These stocks are Ocwen Financial Corporation (NYSE:OCN), Quantum Corporation (NASDAQ:QMCO), Sify Technologies Limited (NASDAQ:SIFY), LiqTech International Inc (NYSE:LIQT), Veru Inc. (NASDAQ:VERU), Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE), and LiveXLive Media, Inc. (NASDAQ:LIVX). This group of stocks' market valuations resemble VOXX's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position OCN,8,35212,-9 QMCO,7,4792,1 SIFY,2,582,0 LIQT,2,9224,-1 VERU,7,8891,-3 CSSE,3,19620,0 LIVX,9,13230,2 Average,5.4,13079,-1.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.4 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $35 million in VOXX's case. LiveXLive Media, Inc. (NASDAQ:LIVX) is the most popular stock in this table. On the other hand Sify Technologies Limited (NASDAQ:SIFY) is the least popular one with only 2 bullish hedge fund positions. VOXX International Corp (NASDAQ:VOXX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for VOXX is 55.7. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 31.6% in 2020 through December 2nd and still beat the market by 16 percentage points. Hedge funds were also right about betting on VOXX as the stock returned 72.6% since the end of Q3 (through 12/2) 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.