Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the second quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Ferroglobe PLC (NASDAQ:GSM) based on that data.
Ferroglobe PLC (NASDAQ:GSM) investors should pay attention to an increase in hedge fund interest lately. Ferroglobe PLC (NASDAQ:GSM) was in 19 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 23. Our calculations also showed that GSM isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
According to most stock holders, hedge funds are seen as unimportant, outdated investment vehicles of the past. While there are over 8000 funds trading at present, Our experts choose to focus on the bigwigs of this club, about 850 funds. It is estimated that this group of investors have their hands on the majority of the smart money’s total asset base, and by monitoring their first-class stock picks, Insider Monkey has revealed many investment strategies that have historically beaten the broader indices. Insider Monkey’s flagship short hedge fund strategy defeated the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.
Gavin Saitowitz of Prelude Capital
Keeping this in mind let’s analyze the fresh hedge fund action surrounding Ferroglobe PLC (NASDAQ:GSM).
Do Hedge Funds Think GSM Is A Good Stock To Buy Now?
At the end of June, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in GSM over the last 24 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Ferroglobe PLC (NASDAQ:GSM) was held by Hosking Partners, which reported holding $27.4 million worth of stock at the end of June. It was followed by Renaissance Technologies with a $21 million position. Other investors bullish on the company included Millennium Management, Royce & Associates, and Halcyon Asset Management. In terms of the portfolio weights assigned to each position Halcyon Asset Management allocated the biggest weight to Ferroglobe PLC (NASDAQ:GSM), around 2.34% of its 13F portfolio. Diametric Capital is also relatively very bullish on the stock, dishing out 1.01 percent of its 13F equity portfolio to GSM.
As aggregate interest increased, key money managers were leading the bulls’ herd. Rubric Capital Management, managed by David Rosen, initiated the largest position in Ferroglobe PLC (NASDAQ:GSM). Rubric Capital Management had $12.2 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also made a $1.6 million investment in the stock during the quarter. The other funds with brand new GSM positions are Philip Hempleman’s Ardsley Partners, Nick Thakore’s Diametric Capital, and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).
Let’s now review hedge fund activity in other stocks similar to Ferroglobe PLC (NASDAQ:GSM). These stocks are AngioDynamics, Inc. (NASDAQ:ANGO), TPG RE Finance Trust, Inc. (NYSE:TRTX), SI-BONE, Inc. (NASDAQ:SIBN), So-Young International Inc. (NASDAQ:SY), Fortuna Silver Mines Inc. (NYSE:FSM), OneSpan Inc. (NASDAQ:OSPN), and Endeavour Silver Corp. (NYSE:EXK). All of these stocks’ market caps are similar to GSM’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ANGO | 22 | 155307 | 7 |
| TRTX | 10 | 32371 | 2 |
| SIBN | 28 | 202365 | 2 |
| SY | 5 | 14330 | -1 |
| FSM | 14 | 21601 | 2 |
| OSPN | 10 | 156729 | -5 |
| EXK | 8 | 6435 | -2 |
| Average | 13.9 | 84163 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.9 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $146 million in GSM’s case. SI-BONE, Inc. (NASDAQ:SIBN) is the most popular stock in this table. On the other hand So-Young International Inc. (NASDAQ:SY) is the least popular one with only 5 bullish hedge fund positions. Ferroglobe PLC (NASDAQ:GSM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GSM is 63.2. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. Hedge funds were also right about betting on GSM as the stock returned 20.8% since the end of Q2 (through 10/22) 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.
