The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards DouYu International Holdings Limited (NASDAQ:DOYU).
DouYu International Holdings Limited (NASDAQ:DOYU) investors should pay attention to an increase in hedge fund sentiment of late. DouYu International Holdings Limited (NASDAQ:DOYU) was in 29 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 27. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 27 hedge funds in our database with DOYU holdings at the end of December. Our calculations also showed that DOYU isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV 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 let’s review the latest hedge fund action regarding DouYu International Holdings Limited (NASDAQ:DOYU).
Do Hedge Funds Think DOYU Is A Good Stock To Buy Now?
At Q1’s end, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards DOYU over the last 23 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors has the largest position in DouYu International Holdings Limited (NASDAQ:DOYU), worth close to $37.2 million, corresponding to 0.5% of its total 13F portfolio. The second largest stake is held by Alpine Associates, led by Robert Emil Zoellner, holding a $37 million position; 1% of its 13F portfolio is allocated to the company. Some other professional money managers that hold long positions encompass Benjamin A. Smith’s Laurion Capital Management, William B. Gray’s Orbis Investment Management and Matthew Moskey and Friedrich Schulte-Hillen’s Athos Capital. In terms of the portfolio weights assigned to each position Athos Capital allocated the biggest weight to DouYu International Holdings Limited (NASDAQ:DOYU), around 4.55% of its 13F portfolio. York Capital Management is also relatively very bullish on the stock, earmarking 3.38 percent of its 13F equity portfolio to DOYU.
With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Orbis Investment Management, managed by William B. Gray, created the most valuable position in DouYu International Holdings Limited (NASDAQ:DOYU). Orbis Investment Management had $34 million invested in the company at the end of the quarter. James Dinan’s York Capital Management also initiated a $23.5 million position during the quarter. The following funds were also among the new DOYU investors: Joseph Samuels’s Islet Management, Leung Chi Kit’s Kadensa Capital, and Michael Gelband’s ExodusPoint Capital.
Let’s go over hedge fund activity in other stocks similar to DouYu International Holdings Limited (NASDAQ:DOYU). These stocks are Dorman Products Inc. (NASDAQ:DORM), Sensient Technologies Corporation (NYSE:SXT), NorthWestern Corporation (NYSE:NWE), ViaSat, Inc. (NASDAQ:VSAT), International Game Technology PLC (NYSE:IGT), HB Fuller Co (NYSE:FUL), and National Health Investors Inc (NYSE:NHI). This group of stocks’ market values match DOYU’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.7 hedge funds with bullish positions and the average amount invested in these stocks was $285 million. That figure was $328 million in DOYU’s case. International Game Technology PLC (NYSE:IGT) is the most popular stock in this table. On the other hand NorthWestern Corporation (NYSE:NWE) is the least popular one with only 11 bullish hedge fund positions. DouYu International Holdings Limited (NASDAQ:DOYU) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DOYU is 71.6. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 22.8% in 2021 through July 2nd and beat the market again by 6 percentage points. Unfortunately DOYU wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DOYU were disappointed as the stock returned -36.2% since the end of March (through 7/2) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Douyu International Holdings Ltd (NASDAQ:DOYU)
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Disclosure: None. This article was originally published at Insider Monkey.