The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is BHAT a good stock to buy? Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) has seen an increase in hedge fund interest lately. Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) was in 3 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic 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 BHAT isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In today’s marketplace there are a large number of formulas shareholders put to use to value stocks. A duo of the most underrated formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the top fund managers can outpace the broader indices by a healthy amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
John Overdeck of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $26 biotech stock for $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 we’re going to take a gander at the new hedge fund action encompassing Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT).
Do Hedge Funds Think BHAT Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in BHAT over the last 23 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies has the number one position in Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT), worth close to $0.9 million, corresponding to less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT), around 0.0011% of its 13F portfolio. Two Sigma Advisors is also relatively very bullish on the stock, designating 0.0003 percent of its 13F equity portfolio to BHAT.
As industrywide interest jumped, specific money managers have been driving this bullishness. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the most outsized position in Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT). Two Sigma Advisors had $0.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.1 million investment in the stock during the quarter.
Let’s check out hedge fund activity in other stocks similar to Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT). We will take a look at PHX Minerals Inc. (NYSE:PHX), TESSCO Technologies, Inc. (NASDAQ:TESS), Biomerica, Inc. (NASDAQ:BMRA), EZGO Technologies Ltd. (NASDAQ:EZGO), NXT-ID Inc. (NASDAQ:NXTD), Ocuphire Pharma, Inc. (NASDAQ:OCUP), and Monaker Group, Inc. (NASDAQ:MKGI). This group of stocks’ market caps resemble BHAT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PHX | 5 | 6822 | -1 |
| TESS | 2 | 4116 | -1 |
| BMRA | 1 | 153 | 0 |
| EZGO | 2 | 372 | 2 |
| NXTD | 1 | 21 | 1 |
| OCUP | 4 | 1761 | 3 |
| MKGI | 1 | 74 | -1 |
| Average | 2.3 | 1903 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.3 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $1 million in BHAT’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. Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BHAT is 61. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 17.2% in 2021 through June 11th and beat the market again by 3.3 percentage points. Unfortunately BHAT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BHAT were disappointed as the stock returned -35.3% since the end of March (through 6/11) 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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
