The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, a week after the market trough. In this article we look at what those investors think of China Jo Jo Drugstores Inc (NASDAQ:CJJD).
Is China Jo Jo Drugstores Inc (NASDAQ:CJJD) a splendid investment now? The best stock pickers are becoming less confident. The number of long hedge fund positions were cut by 2 recently. Our calculations also showed that CJJD 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). CJJD was in 3 hedge funds’ portfolios at the end of March. There were 5 hedge funds in our database with CJJD holdings at the end of the previous quarter.
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are plenty of signals market participants use to analyze stocks. A duo of the most useful signals are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the broader indices by a very impressive amount (see the details here).
Lei Zhang of Hillhouse Capital Management
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. You can watch our latest hedge fund manager interview here and find out the name of the large-cap healthcare stock that Sio Capital’s Michael Castor expects to double. 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. Keeping this in mind we’re going to take a gander at the fresh hedge fund action encompassing China Jo Jo Drugstores Inc (NASDAQ:CJJD).
How are hedge funds trading China Jo Jo Drugstores Inc (NASDAQ:CJJD)?
Heading into the second quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of -40% from the fourth quarter of 2019. By comparison, 3 hedge funds held shares or bullish call options in CJJD 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.
More specifically, Hillhouse Capital Management was the largest shareholder of China Jo Jo Drugstores Inc (NASDAQ:CJJD), with a stake worth $8.8 million reported as of the end of September. Trailing Hillhouse Capital Management was Renaissance Technologies, which amassed a stake valued at $1.8 million. Levin Capital Strategies 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 Hillhouse Capital Management allocated the biggest weight to China Jo Jo Drugstores Inc (NASDAQ:CJJD), around 0.12% of its 13F portfolio. Levin Capital Strategies is also relatively very bullish on the stock, dishing out 0.0029 percent of its 13F equity portfolio to CJJD.
Judging by the fact that China Jo Jo Drugstores Inc (NASDAQ:CJJD) has faced a decline in interest from the smart money, logic holds that there exists a select few fund managers who were dropping their positions entirely heading into Q4. Interestingly, Ken Griffin’s Citadel Investment Group dropped the largest stake of the 750 funds tracked by Insider Monkey, worth an estimated $0.1 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund dumped about $0 million worth. These moves are interesting, as total hedge fund interest was cut by 2 funds heading into Q4.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as China Jo Jo Drugstores Inc (NASDAQ:CJJD) but similarly valued. These stocks are Identive, Inc. (NASDAQ:INVE), InnerWorkings, Inc. (NASDAQ:INWK), United Bancshares, Inc. (NASDAQ:UBOH), and Proteostasis Therapeutics, Inc. (NASDAQ:PTI). This group of stocks’ market caps match CJJD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| INVE | 2 | 4026 | -1 |
| INWK | 11 | 7969 | 0 |
| UBOH | 1 | 4756 | 0 |
| PTI | 6 | 4159 | 2 |
| Average | 5 | 5228 | 0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was $11 million in CJJD’s case. InnerWorkings, Inc. (NASDAQ:INWK) is the most popular stock in this table. On the other hand United Bancshares, Inc. (NASDAQ:UBOH) is the least popular one with only 1 bullish hedge fund positions. China Jo Jo Drugstores Inc (NASDAQ:CJJD) is not the least popular stock in this group but hedge fund interest is still below average. 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 gained 7.9% in 2020 through May 22nd and still beat the market by 15.6 percentage points. A small number of hedge funds were also right about betting on CJJD as the stock returned 71.8% during the second quarter and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.
