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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 817 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Horizon Global Corp (NYSE:HZN) for your portfolio? We'll look to this invaluable collective wisdom for the answer.
Hedge fund interest in Horizon Global Corp (NYSE:HZN) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that HZN 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). The level and the change in hedge fund popularity aren't the only variables you need to analyze to decipher hedge funds' perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That's why at the end of this article we will examine companies such as Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA), Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), and BioSig Technologies, Inc. (NASDAQ:BSGM) to gather more data points. Our calculations also showed that HZN 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.
In the eyes of most shareholders, hedge funds are seen as worthless, old financial vehicles of years past. While there are greater than 8000 funds with their doors open at present, Our experts look at the aristocrats of this club, about 850 funds. These money managers orchestrate bulk of all hedge funds' total capital, and by watching their best picks, Insider Monkey has formulated a number of investment strategies that have historically exceeded the S&P 500 index. Insider Monkey's flagship short hedge fund strategy outpaced the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .
Ken Griffin of Citadel Investment Group
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 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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. Now let's take a glance at the recent hedge fund action surrounding Horizon Global Corp (NYSE:HZN).
What have hedge funds been doing with Horizon Global Corp (NYSE:HZN)?
Heading into the fourth quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter of 2020. On the other hand, there were a total of 4 hedge funds with a bullish position in HZN a year ago. With hedgies' positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the number one position in Horizon Global Corp (NYSE:HZN). Royce & Associates has a $12.1 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Mark Broach of Manatuck Hill Partners, with a $3.7 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Remaining peers that are bullish contain Renaissance Technologies, and . In terms of the portfolio weights assigned to each position Manatuck Hill Partners allocated the biggest weight to Horizon Global Corp (NYSE:HZN), around 1.71% of its 13F portfolio. Royce & Associates is also relatively very bullish on the stock, dishing out 0.13 percent of its 13F equity portfolio to HZN.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren't any hedge funds dumping their holdings during the third quarter, there weren't any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven't identified any viable catalysts that can attract investor attention.
Let's also examine hedge fund activity in other stocks similar to Horizon Global Corp (NYSE:HZN). These stocks are Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA), Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), BioSig Technologies, Inc. (NASDAQ:BSGM), ContraFect Corp (NASDAQ:CFRX), BiomX Inc. (NYSE:PHGE), GlycoMimetics, Inc. (NASDAQ:GLYC), and NewHold Investment Corp. (NASDAQ:NHIC). All of these stocks' market caps match HZN's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position AYLA,3,10125,-1 CRBP,8,16655,-6 BSGM,3,294,0 CFRX,11,22007,1 PHGE,6,17882,-1 GLYC,12,45240,-2 NHIC,11,43710,11 Average,7.7,22273,0.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.7 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $17 million in HZN's case. GlycoMimetics, Inc. (NASDAQ:GLYC) is the most popular stock in this table. On the other hand Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Horizon Global Corp (NYSE:HZN) is even less popular than AYLA. Our overall hedge fund sentiment score for HZN is 9.7. 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. Hedge funds clearly dropped the ball on HZN as the stock delivered strong returns, though hedge funds' consensus picks still generated respectable returns. 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 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. A small number of hedge funds were also right about betting on HZN as the stock returned 27.8% since Q3 (through November 23rd) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.