Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 817 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Avino Silver & Gold Mines Ltd. (NYSE:ASM), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Avino Silver & Gold Mines Ltd. (NYSE:ASM) shares haven't seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 3 hedge funds' portfolios at the end of the third quarter of 2020. Our calculations also showed that ASM 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). At the end of this article we will also compare ASM to other stocks including FedNat Holding Co (NASDAQ:FNHC), Abeona Therapeutics Inc (NASDAQ:ABEO), and Magal Security Systems Ltd. (NASDAQ:MAGS) to get a better sense of its popularity. Video: Watch our video about the top 5 most popular hedge fund stocks.
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David Siegel of Two Sigma Advisors
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.Now let's view the key hedge fund action regarding Avino Silver & Gold Mines Ltd. (NYSE:ASM).
Hedge fund activity in Avino Silver & Gold Mines Ltd. (NYSE:ASM)
At the end of September, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter of 2020. Below, you can check out the change in hedge fund sentiment towards ASM over the last 21 quarters. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Two Sigma Advisors held the most valuable stake in Avino Silver & Gold Mines Ltd. (NYSE:ASM), which was worth $0.2 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $0.1 million worth of shares. Citadel Investment Group was also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Two Sigma Advisors allocated the biggest weight to Avino Silver & Gold Mines Ltd. (NYSE:ASM), around 0.0007% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, setting aside 0.0001 percent of its 13F equity portfolio to ASM.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Sprott Asset Management. One hedge fund selling its entire position doesn't always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don't think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Two Sigma Advisors).
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Avino Silver & Gold Mines Ltd. (NYSE:ASM) but similarly valued. These stocks are FedNat Holding Co (NASDAQ:FNHC), Abeona Therapeutics Inc (NASDAQ:ABEO), Magal Security Systems Ltd. (NASDAQ:MAGS), Jianpu Technology Inc. (NYSE:JT), Prudential Bancorp, Inc. (NASDAQ:PBIP), ClearPoint Neuro Inc. (NASDAQ:CLPT), and Concord Medical Services Hldg Ltd (NYSE:CCM). All of these stocks' market caps are closest to ASM's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position FNHC,7,6542,-1 ABEO,14,17856,-4 MAGS,2,2837,0 JT,4,1986,0 PBIP,2,12606,-1 CLPT,2,378,-1 CCM,1,471,0 Average,4.6,6097,-1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.6 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $0 million in ASM's case. Abeona Therapeutics Inc (NASDAQ:ABEO) is the most popular stock in this table. On the other hand Concord Medical Services Hldg Ltd (NYSE:CCM) is the least popular one with only 1 bullish hedge fund positions. Avino Silver & Gold Mines Ltd.(NYSE:ASM) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ASM is 35.2. 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 negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. 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 surpassed the market again by 15.4 percentage points. Unfortunately ASM wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); ASM investors were disappointed as the stock returned -5.1% since the end of September (through 11/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.