The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Eyenovia, Inc. (NASDAQ:EYEN).
Is Eyenovia, Inc. (NASDAQ:EYEN) a buy, sell, or hold? Prominent investors were becoming more confident. The number of bullish hedge fund bets advanced by 2 in recent months. Eyenovia, Inc. (NASDAQ:EYEN) was in 6 hedge funds’ portfolios at the end of March. 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 EYEN isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 4 hedge funds in our database with EYEN positions at the end of the fourth quarter.
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.
Israel Englander of Millennium Management
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. With all of this in mind we’re going to go over the key hedge fund action surrounding Eyenovia, Inc. (NASDAQ:EYEN).
Do Hedge Funds Think EYEN Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in EYEN a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Eyenovia, Inc. (NASDAQ:EYEN) was held by Fairpointe Capital, which reported holding $1.1 million worth of stock at the end of December. It was followed by Renaissance Technologies with a $0.9 million position. Other investors bullish on the company included Two Sigma Advisors, Millennium Management, and AIGH Investment Partners. In terms of the portfolio weights assigned to each position Fairpointe Capital allocated the biggest weight to Eyenovia, Inc. (NASDAQ:EYEN), around 1.62% of its 13F portfolio. AIGH Investment Partners is also relatively very bullish on the stock, earmarking 0.09 percent of its 13F equity portfolio to EYEN.
Consequently, specific money managers were breaking ground themselves. AIGH Investment Partners, managed by Orin Hirschman, created the biggest position in Eyenovia, Inc. (NASDAQ:EYEN). AIGH Investment Partners had $0.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.1 million investment in the stock during the quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Eyenovia, Inc. (NASDAQ:EYEN) but similarly valued. We will take a look at Inmune Bio Inc. (NASDAQ:INMB), Venus Concept Inc. (NASDAQ:VERO), Ampco-Pittsburgh Corp. (NYSE:AP), Clipper Realty Inc. (NYSE:CLPR), Natural Gas Services Group, Inc. (NYSE:NGS), Goodrich Petroleum Corporation (NYSE:GDP), and Siebert Financial Corp. (NASDAQ:SIEB). This group of stocks’ market valuations are similar to EYEN’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| INMB | 3 | 3477 | 1 |
| VERO | 7 | 13082 | 3 |
| AP | 4 | 21161 | -1 |
| CLPR | 7 | 18630 | 0 |
| NGS | 6 | 20145 | -4 |
| GDP | 5 | 21407 | -3 |
| SIEB | 3 | 831 | 2 |
| Average | 5 | 14105 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $4 million in EYEN’s case. Venus Concept Inc. (NASDAQ:VERO) is the most popular stock in this table. On the other hand Inmune Bio Inc. (NASDAQ:INMB) is the least popular one with only 3 bullish hedge fund positions. Eyenovia, Inc. (NASDAQ:EYEN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EYEN 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 19.3% in 2021 through June 25th and beat the market again by 4.8 percentage points. Unfortunately EYEN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EYEN were disappointed as the stock returned 5.7% since the end of March (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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
