A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Postal Realty Trust, Inc. (NYSE:PSTL).
Postal Realty Trust, Inc. (NYSE:PSTL) was in 10 hedge funds’ portfolios at the end of June. The all time high for this statistic is 9. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. PSTL has seen an increase in enthusiasm from smart money recently. There were 9 hedge funds in our database with PSTL positions at the end of the first quarter. Our calculations also showed that PSTL isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. We go through lists like the 10 best EV 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. Keeping this in mind let’s take a glance at the latest hedge fund action encompassing Postal Realty Trust, Inc. (NYSE:PSTL).
Do Hedge Funds Think PSTL Is A Good Stock To Buy Now?
At the end of June, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from the first quarter of 2020. By comparison, 6 hedge funds held shares or bullish call options in PSTL a year ago. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
The largest stake in Postal Realty Trust, Inc. (NYSE:PSTL) was held by Waterfront Capital Partners, which reported holding $12.4 million worth of stock at the end of June. It was followed by Renaissance Technologies with a $7.8 million position. Other investors bullish on the company included Ancora Advisors, Royce & Associates, and Millennium Management. In terms of the portfolio weights assigned to each position Waterfront Capital Partners allocated the biggest weight to Postal Realty Trust, Inc. (NYSE:PSTL), around 0.93% of its 13F portfolio. Ancora Advisors is also relatively very bullish on the stock, earmarking 0.14 percent of its 13F equity portfolio to PSTL.
Now, some big names were leading the bulls’ herd. D E Shaw, managed by D. E. Shaw, created the most valuable position in Postal Realty Trust, Inc. (NYSE:PSTL). D E Shaw had $0.5 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $0.3 million investment in the stock during the quarter. The only other fund with a brand new PSTL position is Matthew L Pinz’s Pinz Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Postal Realty Trust, Inc. (NYSE:PSTL) but similarly valued. We will take a look at TFF Pharmaceuticals, Inc. (NASDAQ:TFFP), SLR Senior Investment Corp. (NASDAQ:SUNS), BELLUS Health Inc. (NASDAQ:BLU), Oxford Square Capital Corp. (NASDAQ:OXSQ), ACNB Corporation (NASDAQ:ACNB), Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC), and Fangdd Network Group Ltd. (NASDAQ:DUO). All of these stocks’ market caps match PSTL’s market cap.
Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
---|---|---|---|
TFFP | 13 | 15124 | -4 |
SUNS | 1 | 1420 | -2 |
BLU | 13 | 74931 | 1 |
OXSQ | 3 | 5823 | -2 |
ACNB | 4 | 7687 | 3 |
NGVC | 9 | 16629 | 1 |
DUO | 2 | 291 | 0 |
Average | 6.4 | 17415 | -0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 6.4 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $38 million in PSTL’s case. TFF Pharmaceuticals, Inc. (NASDAQ:TFFP) is the most popular stock in this table. On the other hand SLR Senior Investment Corp. (NASDAQ:SUNS) is the least popular one with only 1 bullish hedge fund positions. Postal Realty Trust, Inc. (NYSE:PSTL) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PSTL is 73.5. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 25.7% in 2021 through September 27th and beat the market again by 6.2 percentage points. Unfortunately PSTL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PSTL were disappointed as the stock returned 1.9% since the end of June (through 9/27) 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 many of these stocks already outperformed the market since 2019.
Follow Postal Realty Trust Inc. (NYSE:PSTL)
Follow Postal Realty Trust Inc. (NYSE:PSTL)
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Disclosure: None. This article was originally published at Insider Monkey.