We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think of VOXX International Corp (NASDAQ:VOXX) based on that data.
Is VOXX International Corp (NASDAQ:VOXX) ready to rally soon? The best stock pickers are in a bearish mood. The number of bullish hedge fund bets were cut by 1 in recent months. Our calculations also showed that VOXX 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). VOXX was in 7 hedge funds’ portfolios at the end of March. There were 8 hedge funds in our database with VOXX positions at the end of the previous quarter.
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the 21st century investor’s toolkit there are tons of metrics stock traders employ to analyze their holdings. A pair of the most useful metrics are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the elite fund managers can beat their index-focused peers by a superb amount (see the details here).
Chuck Royce of Royce & Associates
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. 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 the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind we’re going to go over the key hedge fund action surrounding VOXX International Corp (NASDAQ:VOXX).
What does smart money think about VOXX International Corp (NASDAQ:VOXX)?
Heading into the second quarter of 2020, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in VOXX over the last 18 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Kahn Brothers was the largest shareholder of VOXX International Corp (NASDAQ:VOXX), with a stake worth $10.7 million reported as of the end of September. Trailing Kahn Brothers was Renaissance Technologies, which amassed a stake valued at $1.6 million. Royce & Associates, Ancora Advisors, and Two Sigma Advisors were 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 Kahn Brothers allocated the biggest weight to VOXX International Corp (NASDAQ:VOXX), around 1.96% of its 13F portfolio. Ancora Advisors is also relatively very bullish on the stock, setting aside 0.04 percent of its 13F equity portfolio to VOXX.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Fondren Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 750+ hedge funds tracked by Insider Monkey identified VOXX as a viable investment and initiated a position in the stock.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as VOXX International Corp (NASDAQ:VOXX) but similarly valued. We will take a look at SharpSpring, Inc. (NASDAQ:SHSP), S&W Seed Company (NASDAQ:SANW), Magal Security Systems Ltd. (NASDAQ:MAGS), and Universal Stainless & Alloy Products (NASDAQ:USAP). This group of stocks’ market valuations resemble VOXX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SHSP | 5 | 16408 | -2 |
| SANW | 5 | 42982 | -1 |
| MAGS | 2 | 1886 | 0 |
| USAP | 6 | 12894 | 0 |
| Average | 4.5 | 18543 | -0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.5 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $15 million in VOXX’s case. Universal Stainless & Alloy Products (NASDAQ:USAP) is the most popular stock in this table. On the other hand Magal Security Systems Ltd. (NASDAQ:MAGS) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks VOXX International Corp (NASDAQ:VOXX) 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 13.9% in 2020 through June 10th but still managed to beat the market by 14.2 percentage points. Hedge funds were also right about betting on VOXX as the stock returned 95.4% so far in Q2 (through June 10th) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
