At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Tenax Therapeutics Inc (NASDAQ:TENX).
Tenax Therapeutics Inc (NASDAQ:TENX) has experienced an increase in hedge fund sentiment in recent months. Our calculations also showed that TENX isn’t among the 30 most popular stocks among hedge funds (click for Q1 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 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 72% since March 2017 and outperformed the S&P 500 ETFs by more than 44 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 Founder of Renaissance Technologies
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, legendary investor Bill Miller told investors to sell 7 extremely popular recession stocks last month. So, we went through his list and recommended another stock with 100% upside potential instead. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Now we’re going to take a gander at the fresh hedge fund action surrounding Tenax Therapeutics Inc (NASDAQ:TENX).
How are hedge funds trading Tenax Therapeutics Inc (NASDAQ:TENX)?
At the end of the first quarter, 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. The graph below displays the number of hedge funds with bullish position in TENX over the last 18 quarters. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Among these funds, Renaissance Technologies held the most valuable stake in Tenax Therapeutics Inc (NASDAQ:TENX), which was worth $0.3 million at the end of the third quarter. On the second spot was Armistice Capital which amassed $0.1 million worth of shares. Sabby Capital was also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Sabby Capital allocated the biggest weight to Tenax Therapeutics Inc (NASDAQ:TENX), around 0.01% of its 13F portfolio. Armistice Capital is also relatively very bullish on the stock, earmarking 0.01 percent of its 13F equity portfolio to TENX.
Now, some big names were leading the bulls’ herd. Armistice Capital, managed by Steven Boyd, initiated the most valuable position in Tenax Therapeutics Inc (NASDAQ:TENX). Armistice Capital had $0.1 million invested in the company at the end of the quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tenax Therapeutics Inc (NASDAQ:TENX) but similarly valued. We will take a look at Yunhong CTI Ltd. (NASDAQ:CTIB), Staffing 360 Solutions, Inc. (NASDAQ:STAF), Globus Maritime Ltd (NASDAQ:GLBS), and InspireMD Inc (NYSE:NSPR). All of these stocks’ market caps are similar to TENX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CTIB | 1 | 16 | 0 |
| STAF | 1 | 16 | 0 |
| GLBS | 1 | 25 | 0 |
| NSPR | 1 | 7 | 0 |
| Average | 1 | 16 | 0 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 1 hedge funds with bullish positions and the average amount invested in these stocks was $0 million. That figure was $0 million in TENX’s case. CTI Industries Corporation (NASDAQ:CTIB) is the most popular stock in this table. On the other hand CTI Industries Corporation (NASDAQ:CTIB) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Tenax Therapeutics Inc (NASDAQ:TENX) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks returned 7.9% in 2020 through May 22nd but still managed to beat the market by 15.6 percentage points. Hedge funds were also right about betting on TENX as the stock returned 106.3% so far in Q2 (through May 22nd) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.
