In this article we will analyze whether The Joint Corp. (NASDAQ:JYNT) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
The Joint Corp. (NASDAQ:JYNT) was in 21 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 17. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. JYNT has seen an increase in activity from the world’s largest hedge funds of late. There were 17 hedge funds in our database with JYNT positions at the end of the fourth quarter. Our calculations also showed that JYNT isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was 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). So you can still find a lot of gems by following hedge funds’ moves today.
Roger Ibbotson of Zebra Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. 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 we’re going to analyze the fresh hedge fund action regarding The Joint Corp. (NASDAQ:JYNT).
Do Hedge Funds Think JYNT Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 24% from the previous quarter. The graph below displays the number of hedge funds with bullish position in JYNT over the last 23 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, Bandera Partners held the most valuable stake in The Joint Corp. (NASDAQ:JYNT), which was worth $81.4 million at the end of the fourth quarter. On the second spot was SW Investment Management which amassed $42.8 million worth of shares. Skylands Capital, General Equity Partners, and Royce & Associates were 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 Bandera Partners allocated the biggest weight to The Joint Corp. (NASDAQ:JYNT), around 32.11% of its 13F portfolio. SW Investment Management is also relatively very bullish on the stock, designating 20.04 percent of its 13F equity portfolio to JYNT.
As one would reasonably expect, key hedge funds were leading the bulls’ herd. General Equity Partners, managed by Andrew Bellas, created the most valuable position in The Joint Corp. (NASDAQ:JYNT). General Equity Partners had $11.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.2 million position during the quarter. The following funds were also among the new JYNT investors: Matthew Hulsizer’s PEAK6 Capital Management, Cliff Asness’s AQR Capital Management, and Roger Ibbotson’s Zebra Capital Management.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as The Joint Corp. (NASDAQ:JYNT) but similarly valued. These stocks are Athira Pharma, Inc. (NASDAQ:ATHA), Veritiv Corp (NYSE:VRTV), Blue Bird Corporation (NASDAQ:BLBD), Harpoon Therapeutics, Inc. (NASDAQ:HARP), TORM plc (NASDAQ:TRMD), American Software, Inc. (NASDAQ:AMSWA), and Albireo Pharma, Inc. (NASDAQ:ALBO). This group of stocks’ market valuations are closest to JYNT’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ATHA | 14 | 212227 | -4 |
| VRTV | 13 | 186130 | 0 |
| BLBD | 13 | 39960 | 4 |
| HARP | 17 | 154823 | 6 |
| TRMD | 4 | 494612 | 1 |
| AMSWA | 6 | 46565 | -2 |
| ALBO | 15 | 170627 | -2 |
| Average | 11.7 | 186421 | 0.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.7 hedge funds with bullish positions and the average amount invested in these stocks was $186 million. That figure was $191 million in JYNT’s case. Harpoon Therapeutics, Inc. (NASDAQ:HARP) is the most popular stock in this table. On the other hand TORM plc (NASDAQ:TRMD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks The Joint Corp. (NASDAQ:JYNT) is more popular among hedge funds. Our overall hedge fund sentiment score for JYNT is 89. 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 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 returned 23.8% in 2021 through July 16th but still managed to beat the market by 7.7 percentage points. Hedge funds were also right about betting on JYNT as the stock returned 72.4% since the end of March (through 7/16) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
