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 second quarter. You can find write-ups 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 and analyze what the smart money thinks of Quotient Limited (NASDAQ:QTNT) based on that data.
Hedge fund interest in Quotient Limited (NASDAQ:QTNT) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Movado Group, Inc (NYSE:MOV), Viomi Technology Co., Ltd (NASDAQ:VIOT), and Corindus Vascular Robotics Inc (NYSE:CVRS) to gather more data points. Our calculations also showed that QTNT isn’t among the 30 most popular stocks among hedge funds (see the video below).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
To most traders, hedge funds are assumed to be slow, old investment tools of yesteryear. While there are more than 8000 funds in operation at present, We look at the leaders of this group, about 750 funds. It is estimated that this group of investors watch over bulk of the smart money’s total capital, and by monitoring their first-class picks, Insider Monkey has unsheathed various investment strategies that have historically outstripped the broader indices. Insider Monkey’s flagship hedge fund strategy surpassed the S&P 500 index by around 5 percentage points per year since its inception in May 2014. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 25.7% since February 2017 (through September 30th) even though the market was up more than 33% during the same period. We just shared a list of 10 short targets in our latest quarterly update .
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We’re going to take a peek at the key hedge fund action regarding Quotient Limited (NASDAQ:QTNT).
Hedge fund activity in Quotient Limited (NASDAQ:QTNT)
At Q2’s end, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. The graph below displays the number of hedge funds with bullish position in QTNT over the last 16 quarters. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Perceptive Advisors, managed by Joseph Edelman, holds the biggest position in Quotient Limited (NASDAQ:QTNT). Perceptive Advisors has a $100.9 million position in the stock, comprising 2.3% of its 13F portfolio. The second most bullish fund manager is Polar Capital, led by Brian Ashford-Russell and Tim Woolley, holding a $57.5 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Some other professional money managers that hold long positions include Bihua Chen’s Cormorant Asset Management, Farallon Capital and Glenn Russell Dubin’s Highbridge Capital Management.
Due to the fact that Quotient Limited (NASDAQ:QTNT) has faced a decline in interest from the smart money, we can see that there were a few fund managers that decided to sell off their positions entirely by the end of the second quarter. At the top of the heap, Warren Lammert’s Granite Point Capital dumped the largest investment of all the hedgies tracked by Insider Monkey, valued at about $1.2 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund dumped about $0.5 million worth. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now review hedge fund activity in other stocks similar to Quotient Limited (NASDAQ:QTNT). We will take a look at Movado Group, Inc (NYSE:MOV), Viomi Technology Co., Ltd (NASDAQ:VIOT), Corindus Vascular Robotics Inc (NYSE:CVRS), and Watford Holdings Ltd. (NASDAQ:WTRE). This group of stocks’ market valuations are closest to QTNT’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MOV | 20 | 42693 | -3 |
| VIOT | 3 | 24349 | 0 |
| CVRS | 9 | 143517 | 1 |
| WTRE | 3 | 2639 | 3 |
| Average | 8.75 | 53300 | 0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.75 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $280 million in QTNT’s case. Movado Group, Inc (NYSE:MOV) is the most popular stock in this table. On the other hand Viomi Technology Co., Ltd (NASDAQ:VIOT) is the least popular one with only 3 bullish hedge fund positions. Quotient Limited (NASDAQ:QTNT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Unfortunately QTNT wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on QTNT were disappointed as the stock returned -16.9% during the third quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.
