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 MMTec, Inc. (NASDAQ:MTC).
Is MTC a good stock to buy? Prominent investors were betting on the stock. The number of long hedge fund bets inched up by 2 in recent months. MMTec, Inc. (NASDAQ:MTC) was in 4 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 2. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that MTC isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To the average investor there are several formulas market participants can use to appraise their holdings. Two of the most under-the-radar formulas are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the top money managers can outclass the broader indices by a very impressive margin (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 .
Matthew Hulsizer of PEAK6 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 $28 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. Keeping this in mind we’re going to go over the key hedge fund action encompassing MMTec, Inc. (NASDAQ:MTC).
Do Hedge Funds Think MTC Is A Good Stock To Buy Now?
At first quarter’s end, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 100% from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in MTC 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, Sabby Capital, managed by Hal Mintz, holds the most valuable position in MMTec, Inc. (NASDAQ:MTC). Sabby Capital has a $3.5 million position in the stock, comprising 0.7% of its 13F portfolio. The second most bullish fund manager is Renaissance Technologies, holding a $0.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors that hold long positions include Ken Griffin’s Citadel Investment Group, Matthew Hulsizer’s PEAK6 Capital Management and . In terms of the portfolio weights assigned to each position Sabby Capital allocated the biggest weight to MMTec, Inc. (NASDAQ:MTC), around 0.67% of its 13F portfolio. PEAK6 Capital Management is also relatively very bullish on the stock, dishing out 0.0004 percent of its 13F equity portfolio to MTC.
Now, key money managers were leading the bulls’ herd. Sabby Capital, managed by Hal Mintz, established the most outsized position in MMTec, Inc. (NASDAQ:MTC). Sabby Capital had $3.5 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.2 million position during the quarter.
Let’s now review hedge fund activity in other stocks similar to MMTec, Inc. (NASDAQ:MTC). These stocks are Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT), PHX Minerals Inc. (NYSE:PHX), TESSCO Technologies, Inc. (NASDAQ:TESS), Biomerica, Inc. (NASDAQ:BMRA), EZGO Technologies Ltd. (NASDAQ:EZGO), NXT-ID Inc. (NASDAQ:NXTD), and Ocuphire Pharma, Inc. (NASDAQ:OCUP). All of these stocks’ market caps are similar to MTC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BHAT | 3 | 1068 | 1 |
| PHX | 5 | 6822 | -1 |
| TESS | 2 | 4116 | -1 |
| BMRA | 1 | 153 | 0 |
| EZGO | 2 | 372 | 2 |
| NXTD | 1 | 21 | 1 |
| OCUP | 4 | 1761 | 3 |
| Average | 2.6 | 2045 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.6 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $4 million in MTC’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. MMTec, Inc. (NASDAQ:MTC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MTC is 74.5. 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. 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 MTC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MTC were disappointed as the stock returned -32.8% 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.