The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Bioline RX Ltd (NASDAQ:BLRX) based on those filings.
Is BLRX a good stock to buy? Prominent investors were taking an optimistic view. The number of bullish hedge fund bets inched up by 1 recently. Bioline RX Ltd (NASDAQ:BLRX) was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 9. Our calculations also showed that BLRX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 5 hedge funds in our database with BLRX holdings at the end of December.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Michael Castor of Sio Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s review the recent hedge fund action surrounding Bioline RX Ltd (NASDAQ:BLRX).
Do Hedge Funds Think BLRX Is A Good Stock To Buy Now?
At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from one quarter earlier. On the other hand, there were a total of 4 hedge funds with a bullish position in BLRX a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Sio Capital, managed by Michael Castor, holds the most valuable position in Bioline RX Ltd (NASDAQ:BLRX). Sio Capital has a $7.7 million position in the stock, comprising 1.6% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, holding a $1.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other professional money managers with similar optimism contain Greg Martinez’s Parkman Healthcare Partners, Devesh Gandhi’s SilverArc Capital and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors. In terms of the portfolio weights assigned to each position Sio Capital allocated the biggest weight to Bioline RX Ltd (NASDAQ:BLRX), around 1.55% of its 13F portfolio. SilverArc Capital is also relatively very bullish on the stock, earmarking 0.3 percent of its 13F equity portfolio to BLRX.
As aggregate interest increased, key hedge funds have jumped into Bioline RX Ltd (NASDAQ:BLRX) headfirst. Sio Capital, managed by Michael Castor, created the largest position in Bioline RX Ltd (NASDAQ:BLRX). Sio Capital had $7.7 million invested in the company at the end of the quarter. Devesh Gandhi’s SilverArc Capital also made a $0.6 million investment in the stock during the quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Bioline RX Ltd (NASDAQ:BLRX) but similarly valued. These stocks are MMTec, Inc. (NASDAQ:MTC), Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT), PHX Minerals Inc. (NYSE:PHX), TESSCO Technologies, Inc. (NASDAQ:TESS), Biomerica, Inc. (NASDAQ:BMRA), EZGO Technologies Ltd. (NASDAQ:EZGO), and NXT-ID Inc. (NASDAQ:NXTD). This group of stocks’ market caps resemble BLRX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MTC | 4 | 4122 | 2 |
| BHAT | 3 | 1068 | 1 |
| PHX | 5 | 6822 | -1 |
| TESS | 2 | 4116 | -1 |
| BMRA | 1 | 153 | 0 |
| EZGO | 2 | 372 | 2 |
| NXTD | 1 | 21 | 1 |
| Average | 2.6 | 2382 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.6 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $11 million in BLRX’s case. PHX Minerals Inc. (NYSE:PHX) is the most popular stock in this table. On the other hand Biomerica, Inc. (NASDAQ:BMRA) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Bioline RX Ltd (NASDAQ:BLRX) is more popular among hedge funds. Our overall hedge fund sentiment score for BLRX is 76. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. Unfortunately BLRX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BLRX were disappointed as the stock returned -3.2% since the end of the first quarter (through 6/25) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
Follow Biolinerx Ltd. (NASDAQ:BLRX)
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Disclosure: None. This article was originally published at Insider Monkey.
