Where Do Hedge Funds Stand On A. H. Belo Corporation (AHC)?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about A. H. Belo Corporation (NYSE:AHC) in this article.

A. H. Belo Corporation (NYSE:AHC) has seen an increase in hedge fund interest lately. A. H. Belo Corporation (NYSE:AHC) was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 5. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that AHC 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.

Mario Gabelli of GAMCO Investors

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $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 let’s take a gander at the latest hedge fund action encompassing A. H. Belo Corporation (NYSE:AHC).

Do Hedge Funds Think AHC Is A Good Stock To Buy Now?

At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from the previous quarter. By comparison, 5 hedge funds held shares or bullish call options in AHC a year ago. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

Among these funds, Renaissance Technologies held the most valuable stake in A. H. Belo Corporation (NYSE:AHC), which was worth $2.3 million at the end of the fourth quarter. On the second spot was Minerva Advisors which amassed $1.4 million worth of shares. GAMCO Investors, Factorial Partners, and Citadel Investment Group were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Minerva Advisors allocated the biggest weight to A. H. Belo Corporation (NYSE:AHC), around 0.74% of its 13F portfolio. Factorial Partners is also relatively very bullish on the stock, designating 0.12 percent of its 13F equity portfolio to AHC.

As aggregate interest increased, some big names have jumped into A. H. Belo Corporation (NYSE:AHC) headfirst. Citadel Investment Group, managed by Ken Griffin, assembled the most outsized call position in A. H. Belo Corporation (NYSE:AHC). Citadel Investment Group had $0.1 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 also examine hedge fund activity in other stocks similar to A. H. Belo Corporation (NYSE:AHC). These stocks are Global Self Storage, Inc. (NASDAQ:SELF), Lixte Biotechnology Holdings, Inc. (NASDAQ:LIXT), NetSol Technologies Inc. (NASDAQ:NTWK), Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX), Flanigan’s Enterprises, Inc. (NYSE:BDL), PainReform Ltd. (NASDAQ:PRFX), and JAKKS Pacific, Inc. (NASDAQ:JAKK). This group of stocks’ market values resemble AHC’s market value.

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 $4 million in AHC’s case. Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX) is the most popular stock in this table. On the other hand Global Self Storage, Inc. (NASDAQ:SELF) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks A. H. Belo Corporation (NYSE:AHC) is more popular among hedge funds. Our overall hedge fund sentiment score for AHC is 86. 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 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. Unfortunately AHC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on AHC were disappointed as the stock returned -6.5% since the end of the first quarter (through 6/25) 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 most of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.