After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards CONX Corp. (NASDAQ:CONX).
CONX Corp. (NASDAQ:CONX) was in 37 hedge funds’ portfolios at the end of September. The all time high for this statistic is 39. CONX shareholders have witnessed a decrease in activity from the world’s largest hedge funds in recent months. There were 39 hedge funds in our database with CONX positions at the end of the second quarter. Our calculations also showed that CONX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Now we’re going to take a look at the key hedge fund action encompassing CONX Corp. (NASDAQ:CONX).
Paul Glazer of Glazer Capital
Do Hedge Funds Think CONX Is A Good Stock To Buy Now?
At the end of September, a total of 37 of the hedge funds tracked by Insider Monkey were long this stock, a change of -5% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CONX over the last 25 quarters. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Josh Resnick’s Jericho Capital Asset Management has the number one position in CONX Corp. (NASDAQ:CONX) , worth close to $39.2 million, amounting to 1.1% of its total 13F portfolio. The second largest stake is held by Magnetar Capital, managed by Alec Litowitz and Ross Laser, which holds a $38.2 million position; 0.4% of its 13F portfolio is allocated to the company. Other peers that are bullish include Paul Glazer’s Glazer Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Fort Baker Capital Management allocated the biggest weight to CONX Corp. (NASDAQ:CONX) , around 4.75% of its 13F portfolio. Discovery Capital Management is also relatively very bullish on the stock, earmarking 1.69 percent of its 13F equity portfolio to CONX.
Because CONX Corp. (NASDAQ:CONX) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few money managers who were dropping their positions entirely in the third quarter. Intriguingly, Himanshu Gulati’s Antara Capital sold off the biggest investment of the 750 funds watched by Insider Monkey, totaling close to $4.9 million in stock. Doug Silverman and Alexander Klabin’s fund, Senator Investment Group, also dumped its stock, about $1.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds in the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CONX Corp. (NASDAQ:CONX) but similarly valued. These stocks are Funko, Inc. (NASDAQ:FNKO), Washington Trust Bancorp, Inc. (NASDAQ:WASH), Heritage Financial Corporation (NASDAQ:HFWA), Ellington Financial Inc. (NYSE:EFC), Electric Last Mile Solutions Inc. (NASDAQ:ELMS), Alpha Metallurgical Resources, Inc. (NYSE:AMR), and TransMedics Group, Inc. (NASDAQ:TMDX). This group of stocks’ market valuations are similar to CONX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| FNKO | 18 | 155986 | -1 |
| WASH | 5 | 18363 | -4 |
| HFWA | 10 | 20945 | 2 |
| EFC | 10 | 58995 | 3 |
| ELMS | 13 | 6645 | 13 |
| AMR | 19 | 209813 | 0 |
| TMDX | 5 | 5127 | -3 |
| Average | 11.4 | 67982 | 1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.4 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $408 million in CONX’s case. Alpha Metallurgical Resources, Inc. (NYSE:AMR) is the most popular stock in this table. On the other hand Washington Trust Bancorp, Inc. (NASDAQ:WASH) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks CONX Corp. (NASDAQ:CONX) is more popular among hedge funds. Our overall hedge fund sentiment score for CONX is 81.5. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately CONX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CONX were disappointed as the stock returned 0.3% since the end of the third quarter (through 11/30) 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.
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Disclosure: None. This article was originally published at Insider Monkey.
