After several tireless days we have finished crunching the numbers from nearly 817 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 CorMedix Inc. (NYSE:CRMD).
Is CorMedix (CRMD) a good stock to buy now? CRMD investors should pay attention to an increase in hedge fund interest lately. CorMedix Inc. (NYSE:CRMD) was in 5 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 6. There were 3 hedge funds in our database with CRMD positions at the end of the second quarter. Our calculations also showed that CRMD isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (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 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
David Harding of Winton Capital Management
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. 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 website. Keeping this in mind let’s analyze the new hedge fund action surrounding CorMedix Inc. (NYSE:CRMD).
How have hedgies been trading CorMedix Inc. (NYSE:CRMD)?
At third quarter’s end, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 67% from one quarter earlier. On the other hand, there were a total of 6 hedge funds with a bullish position in CRMD a year ago. So, let’s review 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, Paul Singer’s Elliott Investment Management has the most valuable position in CorMedix Inc. (NYSE:CRMD), worth close to $10.6 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Two Sigma Advisors, led by John Overdeck and David Siegel, holding a $0.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism encompass Israel Englander’s Millennium Management, David Harding’s Winton Capital Management and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Elliott Investment Management allocated the biggest weight to CorMedix Inc. (NYSE:CRMD), around 0.11% of its 13F portfolio. Sabby Capital is also relatively very bullish on the stock, designating 0.02 percent of its 13F equity portfolio to CRMD.
As aggregate interest increased, key money managers have jumped into CorMedix Inc. (NYSE:CRMD) headfirst. Millennium Management, managed by Israel Englander, assembled the most valuable position in CorMedix Inc. (NYSE:CRMD). Millennium Management had $0.6 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also made a $0.4 million investment in the stock during the quarter.
Let’s now take a look at hedge fund activity in other stocks similar to CorMedix Inc. (NYSE:CRMD). We will take a look at Saratoga Investment Corp (NYSE:SAR), Nymox Pharmaceutical Corporation (NASDAQ:NYMX), PolyPid Ltd. (NASDAQ:PYPD), The Cato Corporation (NYSE:CATO), Trecora Resources (NYSE:TREC), Southern First Bancshares, Inc. (NASDAQ:SFST), and Hurco Companies, Inc. (NASDAQ:HURC). This group of stocks’ market caps match CRMD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAR | 5 | 5782 | -2 |
| NYMX | 1 | 88 | -1 |
| PYPD | 2 | 3226 | -3 |
| CATO | 12 | 12305 | 0 |
| TREC | 6 | 15560 | -3 |
| SFST | 6 | 10610 | 0 |
| HURC | 4 | 28880 | 0 |
| Average | 5.1 | 10922 | -1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.1 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $12 million in CRMD’s case. The Cato Corporation (NYSE:CATO) is the most popular stock in this table. On the other hand Nymox Pharmaceutical Corporation (NASDAQ:NYMX) is the least popular one with only 1 bullish hedge fund positions. CorMedix Inc. (NYSE:CRMD) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CRMD is 50.2. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on CRMD as the stock returned 48.6% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
