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 fourth 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 MOGU Inc. (NYSE:MOGU) based on that data.
MOGU Inc. (NYSE:MOGU) was in 3 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. MOGU has experienced a decrease in activity from the world’s largest hedge funds recently. There were 6 hedge funds in our database with MOGU positions at the end of the fourth quarter. Our calculations also showed that MOGU isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the eyes of most shareholders, hedge funds are perceived as underperforming, outdated investment vehicles of yesteryear. While there are over 8000 funds in operation at the moment, Our researchers look at the leaders of this club, approximately 850 funds. It is estimated that this group of investors have their hands on the lion’s share of the smart money’s total capital, and by shadowing their inimitable investments, Insider Monkey has determined several investment strategies that have historically outstripped the market. Insider Monkey’s flagship short hedge fund strategy defeated the S&P 500 short ETFs by around 20 percentage points per annum 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 wants to buy this $28 biotech stock for $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. With all of this in mind let’s take a peek at the fresh hedge fund action surrounding MOGU Inc. (NYSE:MOGU).
Do Hedge Funds Think MOGU Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -50% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MOGU over the last 23 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
The largest stake in MOGU Inc. (NYSE:MOGU) was held by Hillhouse Capital Management, which reported holding $20.3 million worth of stock at the end of December. It was followed by Renaissance Technologies with a $1.1 million position. The only other hedge fund that is bullish on the company was Millennium Management.
Since MOGU Inc. (NYSE:MOGU) has experienced falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of hedge funds who were dropping their positions entirely last quarter. Intriguingly, Fang Zheng’s Keywise Capital Management said goodbye to the largest stake of the 750 funds followed by Insider Monkey, valued at about $1.6 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Prelude Capital (previously Springbok Capital), also dropped its stock, about $1.2 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to MOGU Inc. (NYSE:MOGU). We will take a look at ChoiceOne Financial Services, Inc. (NASDAQ:COFS), AG Mortgage Investment Trust Inc (NYSE:MITT), Marker Therapeutics, Inc. (NASDAQ:MRKR), Satsuma Pharmaceuticals, Inc. (NASDAQ:STSA), Farmer Brothers Co. (NASDAQ:FARM), Permian Basin Royalty Trust (NYSE:PBT), and Abeona Therapeutics Inc (NASDAQ:ABEO). This group of stocks’ market values are similar to MOGU’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COFS | 1 | 402 | -1 |
| MITT | 12 | 28134 | 1 |
| MRKR | 6 | 1418 | 1 |
| STSA | 14 | 85819 | 4 |
| FARM | 10 | 27532 | -3 |
| PBT | 3 | 1457 | 1 |
| ABEO | 7 | 16688 | -4 |
| Average | 7.6 | 23064 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.6 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $21 million in MOGU’s case. Satsuma Pharmaceuticals, Inc. (NASDAQ:STSA) is the most popular stock in this table. On the other hand ChoiceOne Financial Services, Inc. (NASDAQ:COFS) is the least popular one with only 1 bullish hedge fund positions. MOGU Inc. (NYSE:MOGU) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for MOGU is 24.7. 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. This is a slightly negative signal and 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 17.2% in 2021 through June 11th and surpassed the market again by 3.3 percentage points. Unfortunately MOGU wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); MOGU investors were disappointed as the stock returned -12.9% since the end of March (through 6/11) 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 in 2021.
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Disclosure: None. This article was originally published at Insider Monkey.
