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EMX Royalty Corporation (EMX): Hedge Funds Watching From Afar

The Insider Monkey team has completed processing the quarterly 13F filings for the September 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 EMX Royalty Corporation (NYSE:EMX).

Hedge fund interest in EMX Royalty Corporation (NYSE:EMX) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare EMX to other stocks including Eton Pharmaceutcials, Inc. (NASDAQ:ETON), Eagle Bancorp Montana Inc (NASDAQ:EBMT), and Mammoth Energy Services, Inc. (NASDAQ:TUSK) to get a better sense of its popularity.

In the 21st century investor’s toolkit there are plenty of formulas investors put to use to value their stock investments. A couple of the most useful formulas are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the top money managers can beat their index-focused peers by a very impressive amount (see the details here).

RENAISSANCE TECHNOLOGIES

Jim Simons Founder of RENAISSANCE TECHNOLOGIES

Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world’s most bearish hedge fund that’s more convinced than ever that a crash is coming, our long-short investment strategy doesn’t rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds‘ buy/sell signals. We’re going to analyze the new hedge fund action surrounding EMX Royalty Corporation (NYSE:EMX).

How have hedgies been trading EMX Royalty Corporation (NYSE:EMX)?

At Q3’s end, a total of 2 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in EMX over the last 17 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

EMX_nov2019

Among these funds, Sprott Asset Management held the most valuable stake in EMX Royalty Corporation (NYSE:EMX), which was worth $6.9 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $0.3 million worth of shares.

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s go over hedge fund activity in other stocks similar to EMX Royalty Corporation (NYSE:EMX). We will take a look at Eton Pharmaceutcials, Inc. (NASDAQ:ETON), Eagle Bancorp Montana Inc (NASDAQ:EBMT), Mammoth Energy Services, Inc. (NASDAQ:TUSK), and Garrison Capital Inc (NASDAQ:GARS). This group of stocks’ market valuations are similar to EMX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ETON 3 8860 0
EBMT 3 8924 0
TUSK 9 56496 0
GARS 2 423 0
Average 4.25 18676 0

View table here if you experience formatting issues.

As you can see these stocks had an average of 4.25 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $7 million in EMX’s case. Mammoth Energy Services, Inc. (NASDAQ:TUSK) is the most popular stock in this table. On the other hand Garrison Capital Inc (NASDAQ:GARS) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks EMX Royalty Corporation (NYSE:EMX) is even less popular than GARS. Hedge funds dodged a bullet by taking a bearish stance towards EMX. Our calculations showed that the top 20 most popular hedge fund stocks returned 34.7% in 2019 through November 22nd and outperformed the S&P 500 ETF (SPY) by 8.5 percentage points. Unfortunately EMX wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); EMX investors were disappointed as the stock returned 0.7% during the fourth quarter (through 11/22) 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 70 percent of these stocks already outperformed the market so far in Q4.

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

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