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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 IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) makes for a good investment right now.
Hedge fund interest in IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that IRCP 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). At the end of this article we will also compare IRCP to other stocks including Viking Therapeutics, Inc. (NASDAQ:VKTX), Clarus Corporation (NASDAQ:CLAR), and Orchard Therapeutics plc (NASDAQ:ORTX) to get a better sense of its popularity.
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 113% since March 2017 and outperformed the S&P 500 ETFs by more than 66 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Jim Simons of Renaissance Technologies
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 15 best blue chip stocks 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. Keeping this in mind we're going to take a look at the new hedge fund action surrounding IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP).
How are hedge funds trading IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP)?
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in 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 IRCP a year ago. So, let's check 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, Rima Senvest Management, managed by Richard Mashaal, holds the biggest position in IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP). Rima Senvest Management has a $4.4 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by Ari Zweiman of 683 Capital Partners, with a $3.4 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish consist of Robert Charles Gibbins's Autonomy Capital, Don Morgan's Brigade Capital and Renaissance Technologies. In terms of the portfolio weights assigned to each position Autonomy Capital allocated the biggest weight to IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP), around 1.11% of its 13F portfolio. Rima Senvest Management is also relatively very bullish on the stock, designating 0.25 percent of its 13F equity portfolio to IRCP.
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 check out hedge fund activity in other stocks similar to IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP). We will take a look at Viking Therapeutics, Inc. (NASDAQ:VKTX), Clarus Corporation (NASDAQ:CLAR), Orchard Therapeutics plc (NASDAQ:ORTX), Viomi Technology Co., Ltd (NASDAQ:VIOT), KNOT Offshore Partners LP (NYSE:KNOP), D8 Holdings Corp. (NYSE:DEH), and Kala Pharmaceuticals, Inc. (NASDAQ:KALA). This group of stocks' market caps resemble IRCP's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VKTX,15,25305,-2 CLAR,15,59380,0 ORTX,14,109000,-6 VIOT,5,21142,-1 KNOP,3,20830,-2 DEH,20,121167,20 KALA,18,142580,-1 Average,12.9,71343,1.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.9 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $11 million in IRCP's case. D8 Holdings Corp. (NYSE:DEH) is the most popular stock in this table. On the other hand KNOT Offshore Partners LP (NYSE:KNOP) is the least popular one with only 3 bullish hedge fund positions. IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for IRCP is 40.9. 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 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on IRCP as the stock returned 85.6% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.