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 Nam Tai Property Inc (NYSE:NTP) based on those filings.
Nam Tai Property Inc (NYSE:NTP) shareholders have witnessed a decrease in activity from the world’s largest hedge funds in recent months. Nam Tai Property Inc (NYSE:NTP) was in 4 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 10. Our calculations also showed that NTP isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 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 take a look at the key hedge fund action encompassing Nam Tai Property Inc (NYSE:NTP).
Do Hedge Funds Think NTP Is A Good Stock To Buy Now?
At first quarter’s end, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -43% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards NTP over the last 23 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Brian Sheehy’s Iszo Capital has the largest position in Nam Tai Property Inc (NYSE:NTP), worth close to $65.2 million, comprising 30.7% of its total 13F portfolio. On Iszo Capital’s heels is Kahn Brothers, holding a $16.2 million position; 2.5% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism include Michael Gelband’s ExodusPoint Capital, and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Iszo Capital allocated the biggest weight to Nam Tai Property Inc (NYSE:NTP), around 30.71% of its 13F portfolio. Kahn Brothers is also relatively very bullish on the stock, setting aside 2.51 percent of its 13F equity portfolio to NTP.
Because Nam Tai Property Inc (NYSE:NTP) has witnessed a decline in interest from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedgies that slashed their full holdings last quarter. Intriguingly, David Nguyen and Nancy Oh’s One68 Global Capital dropped the largest position of all the hedgies watched by Insider Monkey, totaling an estimated $0.2 million in stock, and Renaissance Technologies was right behind this move, as the fund dropped about $0.2 million worth. These moves are important to note, as total hedge fund interest dropped by 3 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks similar to Nam Tai Property Inc (NYSE:NTP). These stocks are Verso Corporation (NYSE:VRS), SOC Telemed, Inc. (NASDAQ:TLMD), Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), Financial Institutions, Inc. (NASDAQ:FISI), Mesa Air Group, Inc. (NASDAQ:MESA), and McEwen Mining Inc (NYSE:MUX). This group of stocks’ market values are similar to NTP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VRS | 15 | 65507 | 2 |
| TLMD | 12 | 53958 | -1 |
| CLMT | 4 | 20767 | 1 |
| CPRX | 13 | 75026 | -3 |
| FISI | 11 | 26854 | -2 |
| MESA | 20 | 69658 | 6 |
| MUX | 5 | 18635 | -5 |
| Average | 11.4 | 47201 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.4 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $82 million in NTP’s case. Mesa Air Group, Inc. (NASDAQ:MESA) is the most popular stock in this table. On the other hand Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Nam Tai Property Inc (NYSE:NTP) is even less popular than CLMT. Our overall hedge fund sentiment score for NTP is 14. 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. Hedge funds clearly dropped the ball on NTP as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. 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 NTP as the stock returned 199.3% since Q1 (through June 11th) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
