Where Do Hedge Funds Stand On Fusion Fuel Green PLC (HTOO)?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Fusion Fuel Green PLC (NASDAQ:HTOO).

Is Fusion Fuel Green PLC (NASDAQ:HTOO) a buy here? Prominent investors were turning bullish. The number of bullish hedge fund positions inched up by 1 lately. Fusion Fuel Green PLC (NASDAQ:HTOO) 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 HTOO isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 5 hedge funds in our database with HTOO positions at the end of the fourth quarter.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

Paul Marshall of Marshall Wace

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 review the new hedge fund action regarding Fusion Fuel Green PLC (NASDAQ:HTOO).

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

At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards HTOO over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, MAK Capital One, managed by Michael Kaufman, holds the largest position in Fusion Fuel Green PLC (NASDAQ:HTOO). MAK Capital One has a $10 million position in the stock, comprising 2.4% of its 13F portfolio. On MAK Capital One’s heels is Michael Kaufman of MAK Capital One, with a $4.9 million position; the fund has 1.2% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions consist of Till Bechtolsheimer’s Arosa Capital Management, Greg Eisner’s Engineers Gate Manager and Paul Marshall and Ian Wace’s Marshall Wace LLP. In terms of the portfolio weights assigned to each position MAK Capital One allocated the biggest weight to Fusion Fuel Green PLC (NASDAQ:HTOO), around 2.39% of its 13F portfolio. MAK Capital One is also relatively very bullish on the stock, dishing out 1.16 percent of its 13F equity portfolio to HTOO.

Consequently, key hedge funds have jumped into Fusion Fuel Green PLC (NASDAQ:HTOO) headfirst. Engineers Gate Manager, managed by Greg Eisner, initiated the largest position in Fusion Fuel Green PLC (NASDAQ:HTOO). Engineers Gate Manager had $0.5 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Fusion Fuel Green PLC (NASDAQ:HTOO). We will take a look at Neptune Wellness Solutions Inc (NASDAQ:NEPT), Processa Pharmaceuticals, Inc. (NASDAQ:PCSA), Ocean Power Technologies Inc (NYSE:OPTT), InflaRx N.V. (NASDAQ:IFRX), Gain Therapeutics, Inc. (NASDAQ:GANX), ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA), and First Northwest Bancorp (NASDAQ:FNWB). This group of stocks’ market valuations match HTOO’s market valuation.

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 $18 million in HTOO’s case. InflaRx N.V. (NASDAQ:IFRX) is the most popular stock in this table. On the other hand ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA) is the least popular one with only 1 bullish hedge fund positions. Fusion Fuel Green PLC (NASDAQ:HTOO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for HTOO is 51.6. 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 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. Hedge funds were also right about betting on HTOO, though not to the same extent, as the stock returned 9.3% since Q1 (through June 25th) and outperformed the market as well.

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