The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Inpixon (NASDAQ:INPX).
Is INPX a good stock to buy? Hedge funds were getting more optimistic. The number of long hedge fund bets rose by 1 lately. Inpixon (NASDAQ:INPX) was in 4 hedge funds’ portfolios at the end of March. The all time high for this statistic was 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 INPX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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 Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 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. Now we’re going to analyze the recent hedge fund action regarding Inpixon (NASDAQ:INPX).
Do Hedge Funds Think INPX Is A Good Stock To Buy Now?
At the end of March, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in INPX a year ago. So, let’s see 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 Inpixon (NASDAQ:INPX), worth close to $0.5 million, accounting for less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is Citadel Investment Group, managed by Ken Griffin, which holds a $0.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism consist of Michael Gelband’s ExodusPoint Capital, Israel Englander’s Millennium Management and . In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Inpixon (NASDAQ:INPX), around 0.0006% of its 13F portfolio. ExodusPoint Capital is also relatively very bullish on the stock, designating 0.0004 percent of its 13F equity portfolio to INPX.
As industrywide interest jumped, some big names were breaking ground themselves. ExodusPoint Capital, managed by Michael Gelband, established the most valuable position in Inpixon (NASDAQ:INPX). ExodusPoint Capital had $0 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0 million investment in the stock during the quarter.
Let’s go over hedge fund activity in other stocks similar to Inpixon (NASDAQ:INPX). We will take a look at U.S. Global Investors, Inc. (NASDAQ:GROW), AgroFresh Solutions Inc (NASDAQ:AGFS), RYB Education, Inc. (NYSE:RYB), Forum Energy Technologies Inc (NYSE:FET), Magal Security Systems Ltd. (NASDAQ:MAGS), Frequency Electronics, Inc. (NASDAQ:FEIM), and Actinium Pharmaceuticals Inc (NYSE:ATNM). This group of stocks’ market valuations are closest to INPX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GROW | 7 | 12564 | 2 |
| AGFS | 5 | 1957 | 4 |
| RYB | 2 | 6360 | -1 |
| FET | 5 | 4086 | 2 |
| MAGS | 2 | 3403 | 0 |
| FEIM | 2 | 10573 | 0 |
| ATNM | 1 | 350 | -8 |
| Average | 3.4 | 5613 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 3.4 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $1 million in INPX’s case. U.S. Global Investors, Inc. (NASDAQ:GROW) is the most popular stock in this table. On the other hand Actinium Pharmaceuticals Inc (NYSE:ATNM) is the least popular one with only 1 bullish hedge fund positions. Inpixon (NASDAQ:INPX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for INPX 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 INPX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on INPX were disappointed as the stock returned -0.8% 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.