The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards EMX Royalty Corporation (NYSE:EMX).
Is EMX Royalty Corporation (NYSE:EMX) a buy here? Hedge funds were betting on the stock. The number of bullish hedge fund positions improved by 1 in recent months. EMX Royalty Corporation (NYSE:EMX) was in 3 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that EMX 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.
Today there are tons of formulas stock market investors have at their disposal to analyze publicly traded companies. Some of the best formulas are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat their index-focused peers by a solid margin (see the details here).
Eric Sprott of Sprott Asset 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 10 most profitable companies in the world 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. Now we’re going to check out the fresh hedge fund action surrounding EMX Royalty Corporation (NYSE:EMX).
How are hedge funds trading EMX Royalty Corporation (NYSE:EMX)?
At the end of September, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in EMX over the last 21 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in EMX Royalty Corporation (NYSE:EMX) was held by Sprott Asset Management, which reported holding $8.6 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $0.6 million position. The only other hedge fund that is bullish on the company was Citadel Investment Group.
As industrywide interest jumped, key money managers have jumped into EMX Royalty Corporation (NYSE:EMX) headfirst. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in EMX Royalty Corporation (NYSE:EMX). Citadel Investment Group had $0 million invested in the company at the end of the quarter.
Let’s also examine hedge fund activity in other stocks similar to EMX Royalty Corporation (NYSE:EMX). These stocks are Old Second Bancorp Inc. (NASDAQ:OSBC), U.S. Silica Holdings Inc (NYSE:SLCA), Fly Leasing Ltd (NYSE:FLY), Ruhnn Holding Limited (NASDAQ:RUHN), GreenPower Motor Company Inc. (NASDAQ:GP), Matrix Service Co (NASDAQ:MTRX), and NN, Inc. (NASDAQ:NNBR). All of these stocks’ market caps match EMX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| OSBC | 10 | 12116 | -2 |
| SLCA | 16 | 57788 | 0 |
| FLY | 7 | 12567 | -3 |
| RUHN | 3 | 595 | 1 |
| GP | 2 | 1296 | 2 |
| MTRX | 14 | 13844 | 0 |
| NNBR | 5 | 24506 | 0 |
| Average | 8.1 | 17530 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.1 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $9 million in EMX’s case. U.S. Silica Holdings Inc (NYSE:SLCA) is the most popular stock in this table. On the other hand GreenPower Motor Company Inc. (NASDAQ:GP) is the least popular one with only 2 bullish hedge fund positions. EMX Royalty Corporation (NYSE:EMX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for EMX is 39.6. 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 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. A small number of hedge funds were also right about betting on EMX as the stock returned 7.6% since the end of the third quarter (through 11/23) and outperformed the market by an even larger margin.
Follow Emx Royalty Corporation (NYSE:EMX)
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Disclosure: None. This article was originally published at Insider Monkey.
