The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Sensus Healthcare, Inc. (NASDAQ:SRTS) based on those filings.
Is SRTS a good stock to buy? The best stock pickers were taking a bullish view. The number of bullish hedge fund bets improved by 1 lately. Sensus Healthcare, Inc. (NASDAQ:SRTS) was in 3 hedge funds’ portfolios at the end of March. The all time high for this statistic is 4. Our calculations also showed that SRTS isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 2 hedge funds in our database with SRTS holdings at the end of December.
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.
Ken Griffin of Citadel Investment Group
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 let’s check out the key hedge fund action encompassing Sensus Healthcare, Inc. (NASDAQ:SRTS).
Do Hedge Funds Think SRTS Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the previous quarter. By comparison, 1 hedge funds held shares or bullish call options in SRTS a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
The largest stake in Sensus Healthcare, Inc. (NASDAQ:SRTS) was held by Invenomic Capital Management, which reported holding $1.1 million worth of stock at the end of December. It was followed by Citadel Investment Group with a $0.1 million position. The only other hedge fund that is bullish on the company was Renaissance Technologies.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, created the most outsized position in Sensus Healthcare, Inc. (NASDAQ:SRTS). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter.
Let’s go over hedge fund activity in other stocks similar to Sensus Healthcare, Inc. (NASDAQ:SRTS). We will take a look at AMCON Distributing Co. (NYSE:DIT), Yield10 Bioscience, Inc. (NASDAQ:YTEN), Aerpio Pharmaceuticals, Inc. (NASDAQ:ARPO), Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), AgeX Therapeutics, Inc. (NYSE:AGE), Research Solutions, Inc (NASDAQ:RSSS), and Cyren Ltd (NASDAQ:CYRN). This group of stocks’ market valuations match SRTS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DIT | 1 | 1259 | 0 |
| YTEN | 7 | 7187 | 5 |
| ARPO | 10 | 19438 | 2 |
| BOTJ | 2 | 6131 | 1 |
| AGE | 3 | 5420 | 0 |
| RSSS | 2 | 3657 | -2 |
| CYRN | 3 | 1825 | 0 |
| Average | 4 | 6417 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $1 million in SRTS’s case. Aerpio Pharmaceuticals, Inc. (NASDAQ:ARPO) is the most popular stock in this table. On the other hand AMCON Distributing Co. (NYSE:DIT) is the least popular one with only 1 bullish hedge fund positions. Sensus Healthcare, Inc. (NASDAQ:SRTS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SRTS 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 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 still beat the market by 3.3 percentage points. A small number of hedge funds were also right about betting on SRTS as the stock returned 16.2% since the end of the first quarter (through 6/11) and outperformed the market by an even larger margin.
Disclosure: None. This article was originally published at Insider Monkey.
