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. Insider Monkey finished processing 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Crescent Capital BDC, Inc. (NASDAQ:CCAP).
Is Crescent Capital BDC, Inc. (NASDAQ:CCAP) undervalued? Money managers were turning bullish. The number of bullish hedge fund bets went up by 1 in recent months. Crescent Capital BDC, Inc. (NASDAQ:CCAP) was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 6. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CCAP isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 5 hedge funds in our database with CCAP positions at the end of the fourth quarter.
Today there are several gauges stock traders can use to value stocks. A couple of the most innovative gauges are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top money managers can outperform the market 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 .
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 we’re going to check out the recent hedge fund action encompassing Crescent Capital BDC, Inc. (NASDAQ:CCAP).
Do Hedge Funds Think CCAP Is A Good Stock To Buy Now?
At the end of March, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from one quarter earlier. On the other hand, there were a total of 5 hedge funds with a bullish position in CCAP a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Crescent Capital BDC, Inc. (NASDAQ:CCAP) was held by Fairfax Financial Holdings, which reported holding $64.7 million worth of stock at the end of December. It was followed by Callodine Capital Management with a $2.4 million position. Other investors bullish on the company included Bulldog Investors, Millennium Management, and LMR Partners. In terms of the portfolio weights assigned to each position Fairfax Financial Holdings allocated the biggest weight to Crescent Capital BDC, Inc. (NASDAQ:CCAP), around 2.26% of its 13F portfolio. Callodine Capital Management is also relatively very bullish on the stock, dishing out 1.05 percent of its 13F equity portfolio to CCAP.
As industrywide interest jumped, key money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, created the most outsized position in Crescent Capital BDC, Inc. (NASDAQ:CCAP). Citadel Investment Group had $0.2 million invested in the company at the end of the quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Crescent Capital BDC, Inc. (NASDAQ:CCAP) but similarly valued. We will take a look at Hoegh LNG Partners LP (NYSE:HMLP), FLEX LNG Ltd. (NYSE:FLNG), Nam Tai Property Inc (NYSE:NTP), Verso Corporation (NYSE:VRS), SOC Telemed, Inc. (NASDAQ:TLMD), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), and Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX). This group of stocks’ market caps match CCAP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HMLP | 7 | 18926 | 1 |
| FLNG | 1 | 299 | -2 |
| NTP | 4 | 81806 | -3 |
| VRS | 15 | 65507 | 2 |
| TLMD | 12 | 53958 | -1 |
| CLMT | 4 | 20767 | 1 |
| CPRX | 13 | 75026 | -3 |
| Average | 8 | 45184 | -0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $70 million in CCAP’s case. Verso Corporation (NYSE:VRS) is the most popular stock in this table. On the other hand FLEX LNG Ltd. (NYSE:FLNG) is the least popular one with only 1 bullish hedge fund positions. Crescent Capital BDC, Inc. (NASDAQ:CCAP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CCAP is 53.9. 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 beat the market by 4.8 percentage points. A small number of hedge funds were also right about betting on CCAP, though not to the same extent, as the stock returned 9.8% since the end of Q1 (through June 25th) and outperformed the market.
Follow Crescent Capital Bdc Inc. (NASDAQ:CCAP)
Follow Crescent Capital Bdc Inc. (NASDAQ:CCAP)
Suggested Articles:
- How to Best Use Insider Monkey To Increase Your Returns
- 10 Best Dow Stocks To Buy Now
- Billionaire Michael Price’s Top 10 Stock Picks
Disclosure: None. This article was originally published at Insider Monkey.
