The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Kura Sushi USA, Inc. (NASDAQ:KRUS).
Kura Sushi USA, Inc. (NASDAQ:KRUS) shareholders have witnessed an increase in enthusiasm from smart money of late. KRUS was in 4 hedge funds’ portfolios at the end of the third quarter of 2019. There were 0 hedge funds in our database with KRUS positions at the end of the previous quarter. Our calculations also showed that KRUS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In today’s marketplace there are a multitude of methods investors employ to grade stocks. A couple of the most underrated methods are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the broader indices by a solid margin (see the details here).
Chuck Royce of Royce & Associates
We leave no stone unturned when looking for the next great investment idea. For example Discover is offering this insane cashback card, so we look into shorting the stock. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We even check out this option genius’ weekly trade ideas. This December, we recommended Adams Energy as a one-way bet based on an under-the-radar fund manager’s investor letter and the stock already gained 20 percent. With all of this in mind let’s go over the new hedge fund action regarding Kura Sushi USA, Inc. (NASDAQ:KRUS).
How have hedgies been trading Kura Sushi USA, Inc. (NASDAQ:KRUS)?
At Q3’s end, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4 from the second quarter of 2019. By comparison, 0 hedge funds held shares or bullish call options in KRUS a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Daniel Lascano’s Lomas Capital Management has the biggest position in Kura Sushi USA, Inc. (NASDAQ:KRUS), worth close to $6.5 million, amounting to 0.7% of its total 13F portfolio. On Lomas Capital Management’s heels is Royce & Associates, led by Chuck Royce, holding a $4.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Mark Broach’s Manatuck Hill Partners, Steve Pei’s Gratia Capital and . In terms of the portfolio weights assigned to each position Manatuck Hill Partners allocated the biggest weight to Kura Sushi USA, Inc. (NASDAQ:KRUS), around 1.94% of its 13F portfolio. Lomas Capital Management is also relatively very bullish on the stock, setting aside 0.68 percent of its 13F equity portfolio to KRUS.
Consequently, key money managers were breaking ground themselves. Lomas Capital Management, managed by Daniel Lascano, created the most outsized position in Kura Sushi USA, Inc. (NASDAQ:KRUS). Lomas Capital Management had $6.5 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also initiated a $4.5 million position during the quarter. The following funds were also among the new KRUS investors: Mark Broach’s Manatuck Hill Partners and Steve Pei’s Gratia Capital.
Let’s now review hedge fund activity in other stocks similar to Kura Sushi USA, Inc. (NASDAQ:KRUS). We will take a look at China Online Education Group (NYSE:COE), Quarterhill Inc. (NASDAQ:QTRH), Neuronetics, Inc. (NASDAQ:STIM), and FIRST FINANCIAL NORTHWEST, INC. (NASDAQ:FFNW). All of these stocks’ market caps match KRUS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COE | 4 | 5109 | 0 |
| QTRH | 3 | 3762 | 0 |
| STIM | 6 | 4361 | 1 |
| FFNW | 1 | 9976 | -1 |
| Average | 3.5 | 5802 | 0 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 3.5 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $15 million in KRUS’s case. Neuronetics, Inc. (NASDAQ:STIM) is the most popular stock in this table. On the other hand FIRST FINANCIAL NORTHWEST, INC. (NASDAQ:FFNW) is the least popular one with only 1 bullish hedge fund positions. Kura Sushi USA, Inc. (NASDAQ:KRUS) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Hedge funds were also right about betting on KRUS as the stock returned 32.2% during the fourth quarter (through the end of November) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.