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 March 31, so let’s proceed with the discussion of the hedge fund sentiment on IntriCon Corporation (NASDAQ:IIN).
IntriCon Corporation (NASDAQ:IIN) investors should pay attention to an increase in hedge fund interest in recent months. IIN was in 14 hedge funds’ portfolios at the end of March. There were 12 hedge funds in our database with IIN positions at the end of the previous quarter. Our calculations also showed that IIN isn’t among the 30 most popular stocks among hedge funds.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let’s check out the latest hedge fund action regarding IntriCon Corporation (NASDAQ:IIN).
How are hedge funds trading IntriCon Corporation (NASDAQ:IIN)?
Heading into the second quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards IIN over the last 15 quarters. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
More specifically, Endurant Capital Management was the largest shareholder of IntriCon Corporation (NASDAQ:IIN), with a stake worth $13.9 million reported as of the end of March. Trailing Endurant Capital Management was Citadel Investment Group, which amassed a stake valued at $7.6 million. Marshall Wace LLP, AQR Capital Management, and Renaissance Technologies were also very fond of the stock, giving the stock large weights in their portfolios.
Now, key money managers were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, assembled the largest position in IntriCon Corporation (NASDAQ:IIN). Renaissance Technologies had $2.2 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also initiated a $0.6 million position during the quarter. The following funds were also among the new IIN investors: Efrem Kamen’s Pura Vida Investments, John Overdeck and David Siegel’s Two Sigma Advisors, and David Harding’s Winton Capital Management.
Let’s go over hedge fund activity in other stocks similar to IntriCon Corporation (NASDAQ:IIN). We will take a look at LSC Communications, Inc. (NYSE:LKSD), PolyMet Mining Corp. (NYSEAMEX:PLM), Pyxus International, Inc. (NYSE:PYX), and Genie Energy Ltd (NYSE:GNE). This group of stocks’ market caps resemble IIN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LKSD | 8 | 12848 | 0 |
| PLM | 2 | 259 | 1 |
| PYX | 10 | 17014 | 4 |
| GNE | 9 | 8601 | -2 |
| Average | 7.25 | 9681 | 0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.25 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $40 million in IIN’s case. Pyxus International, Inc. (NYSE:PYX) is the most popular stock in this table. On the other hand PolyMet Mining Corp. (NYSEAMEX:PLM) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks IntriCon Corporation (NASDAQ:IIN) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately IIN wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on IIN were disappointed as the stock returned -2.9% during the same period 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 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
