Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 817 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 United States Antimony Corporation (NYSE:UAMY) in this article.
United States Antimony Corporation (NYSE:UAMY) has experienced an increase in hedge fund sentiment of late. United States Antimony Corporation (NYSE:UAMY) was in 3 hedge funds’ portfolios at the end of September. The all time high for this statistics is 2. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 2 hedge funds in our database with UAMY positions at the end of the second quarter. Our calculations also showed that UAMY isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
So, why do we pay attention to hedge fund sentiment before making any investment decisions? 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 more than 66 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. Even if you aren’t comfortable with shorting stocks, you should at least avoid initiating long positions in stocks that are in our short portfolio.
Sander Gerber of Hudson Bay Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website.Keeping this in mind let’s view the fresh hedge fund action encompassing United States Antimony Corporation (NYSE:UAMY).
What have hedge funds been doing with United States Antimony Corporation (NYSE:UAMY)?
At the end of the third quarter, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the second quarter of 2020. On the other hand, there were a total of 2 hedge funds with a bullish position in UAMY 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.
According to Insider Monkey’s hedge fund database, Hudson Bay Capital Management, managed by Sander Gerber, holds the biggest position in United States Antimony Corporation (NYSE:UAMY). Hudson Bay Capital Management has a $0.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Millennium Management, led by Israel Englander, holding a $0 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. In terms of the portfolio weights assigned to each position Hudson Bay Capital Management allocated the biggest weight to United States Antimony Corporation (NYSE:UAMY), around 0.0009% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, dishing out 0 percent of its 13F equity portfolio to UAMY.
As industrywide interest jumped, some big names were leading the bulls’ herd. Hudson Bay Capital Management, managed by Sander Gerber, initiated the biggest position in United States Antimony Corporation (NYSE:UAMY). Hudson Bay Capital Management had $0.1 million invested in the company at the end of the quarter. Renaissance Technologies also made a $0 million investment in the stock during the quarter.
Let’s now take a look at hedge fund activity in other stocks similar to United States Antimony Corporation (NYSE:UAMY). We will take a look at CPS Technologies Corp. (NASDAQ:CPSH), SIFCO Industries, Inc. (NYSE:SIF), Bonso Electronics International Inc. (NASDAQ:BNSO), Ashford Hospitality Trust, Inc. (NYSE:AHT), AIkido Pharma Inc. (NASDAQ:AIKI), GSE Systems, Inc. (NASDAQ:GVP), and Edison Nation, Inc. (NASDAQ:EDNT). All of these stocks’ market caps resemble UAMY’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CPSH | 1 | 90 | 0 |
| SIF | 3 | 2070 | 0 |
| BNSO | 1 | 660 | 0 |
| AHT | 3 | 1467 | -10 |
| AIKI | 2 | 46 | 1 |
| GVP | 2 | 1303 | -1 |
| EDNT | 1 | 59 | 0 |
| Average | 1.9 | 814 | -1.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 1.9 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $0 million in UAMY’s case. SIFCO Industries, Inc. (NYSE:SIF) is the most popular stock in this table. On the other hand CPS Technologies Corp. (NASDAQ:CPSH) is the least popular one with only 1 bullish hedge fund positions. United States Antimony Corporation (NYSE:UAMY) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for UAMY 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. Hedge funds were also right about betting on UAMY as the stock returned 65.5% since the end of Q3 (through 11/23) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.