A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended December 31, so let’s proceed with the discussion of the hedge fund sentiment on NVE Corporation (NASDAQ:NVEC).
NVE Corporation (NASDAQ:NVEC) was in 4 hedge funds’ portfolios at the end of December. NVEC has experienced a decrease in support from the world’s most elite money managers of late. There were 6 hedge funds in our database with NVEC positions at the end of the previous quarter. Our calculations also showed that NVEC isn’t among the 30 most popular stocks among hedge funds.
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 flagship best performing hedge funds strategy returned 20.7% year to date (through March 12th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 32 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Let’s take a gander at the key hedge fund action encompassing NVE Corporation (NASDAQ:NVEC).
What have hedge funds been doing with NVE Corporation (NASDAQ:NVEC)?
Heading into the first quarter of 2019, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -33% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards NVEC over the last 14 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in NVE Corporation (NASDAQ:NVEC). Renaissance Technologies has a $10.5 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by GLG Partners, led by Noam Gottesman, holding a $2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers with similar optimism encompass Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.
Since NVE Corporation (NASDAQ:NVEC) has experienced falling interest from the smart money, logic holds that there lies a certain “tier” of hedge funds who were dropping their full holdings last quarter. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors cut the largest position of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $0.2 million in stock, and Chuck Royce’s Royce & Associates was right behind this move, as the fund sold off about $0 million worth. These moves are important to note, as total hedge fund interest was cut by 2 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to NVE Corporation (NASDAQ:NVEC). These stocks are Ciner Resources LP (NYSE:CINR), Fiesta Restaurant Group Inc (NASDAQ:FRGI), PDL BioPharma Inc. (NASDAQ:PDLI), and Barrett Business Services, Inc. (NASDAQ:BBSI). All of these stocks’ market caps are closest to NVEC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CINR | 2 | 6364 | 0 |
| FRGI | 20 | 115693 | 0 |
| PDLI | 16 | 57468 | 4 |
| BBSI | 13 | 64664 | 0 |
| Average | 12.75 | 61047 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $13 million in NVEC’s case. Fiesta Restaurant Group Inc (NASDAQ:FRGI) is the most popular stock in this table. On the other hand Ciner Resources LP (NYSE:CINR) is the least popular one with only 2 bullish hedge fund positions. NVE Corporation (NASDAQ:NVEC) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. A small number of hedge funds were also right about betting on NVEC, though not to the same extent, as the stock returned 17.1% and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.
