Where Do Hedge Funds Stand On China Jo Jo Drugstores Inc (CJJD)?
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can't match. So should one consider investing in China Jo Jo Drugstores Inc (NASDAQ:CJJD)? The smart money sentiment can provide an answer to this question.
China Jo Jo Drugstores Inc (NASDAQ:CJJD) investors should be aware of an increase in hedge fund interest lately. China Jo Jo Drugstores Inc (NASDAQ:CJJD) was in 6 hedge funds' portfolios at the end of March. The all time high for this statistic is 6. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 5 hedge funds in our database with CJJD positions at the end of the fourth quarter. Our calculations also showed that CJJD isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most investors, hedge funds are assumed to be underperforming, outdated investment tools of yesteryear. While there are over 8000 funds with their doors open today, We look at the masters of this group, around 850 funds. It is estimated that this group of investors administer the lion's share of the smart money's total asset base, and by keeping an eye on their highest performing picks, Insider Monkey has unearthed many investment strategies that have historically beaten the market. Insider Monkey's flagship short hedge fund strategy outstripped the S&P 500 short ETFs by around 20 percentage points annually 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 .
Lei Zhang of Hillhouse Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $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 let's go over the latest hedge fund action regarding China Jo Jo Drugstores Inc (NASDAQ:CJJD).
Do Hedge Funds Think CJJD Is A Good Stock To Buy Now?
At Q1's end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards CJJD over the last 23 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Hillhouse Capital Management was the largest shareholder of China Jo Jo Drugstores Inc (NASDAQ:CJJD), with a stake worth $5.4 million reported as of the end of March. Trailing Hillhouse Capital Management was Renaissance Technologies, which amassed a stake valued at $2 million. Citadel Investment Group, Two Sigma Advisors, and Sabby Capital 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 Hillhouse Capital Management allocated the biggest weight to China Jo Jo Drugstores Inc (NASDAQ:CJJD), around 0.05% of its 13F portfolio. Sabby Capital is also relatively very bullish on the stock, earmarking 0.01 percent of its 13F equity portfolio to CJJD.
Now, specific money managers were leading the bulls' herd. Citadel Investment Group, managed by Ken Griffin, initiated the largest position in China Jo Jo Drugstores Inc (NASDAQ:CJJD). Citadel Investment Group had $0.2 million invested in the company at the end of the quarter.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as China Jo Jo Drugstores Inc (NASDAQ:CJJD) but similarly valued. We will take a look at Air Industries Group (NYSE:AIRI), Elmira Savings Bank (NASDAQ:ESBK), Pintec Technology Holdings Limited (NASDAQ:PT), Forward Pharma A/S (NASDAQ:FWP), Daxor Corporation (NYSE:DXR), Harbor Custom Development, Inc. (NASDAQ:HCDI), and Cuentas Inc. (NASDAQ:CUEN). This group of stocks' market values resemble CJJD's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AIRI,1,69,-1 ESBK,1,166,0 PT,2,141,-1 FWP,3,4963,1 DXR,2,1740,0 HCDI,2,170,2 CUEN,2,92,2 Average,1.9,1049,0.4 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 1.9 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $8 million in CJJD's case. Forward Pharma A/S (NASDAQ:FWP) is the most popular stock in this table. On the other hand Air Industries Group (NYSE:AIRI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks China Jo Jo Drugstores Inc (NASDAQ:CJJD) is more popular among hedge funds. Our overall hedge fund sentiment score for CJJD is 86. 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 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. Unfortunately CJJD wasn't nearly as popular as these 5 stocks and hedge funds that were betting on CJJD were disappointed as the stock returned -13.4% since the end of the first quarter (through 6/25) 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 since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
