Hedge Funds Are Nibbling On 180 Degree Capital Corp. (TURN)

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the first quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of 180 Degree Capital Corp. (NASDAQ:TURN) based on that data.

180 Degree Capital Corp. (NASDAQ:TURN) was in 3 hedge funds’ portfolios at the end of the first quarter of 2020. TURN shareholders have witnessed an increase in support from the world’s most elite money managers recently. There were 2 hedge funds in our database with TURN holdings at the end of the previous quarter. Our calculations also showed that TURN isn’t among the 30 most popular stocks among hedge funds (click for Q1 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.

At the moment there are a large number of signals shareholders can use to size up their holdings. A duo of the most innovative signals are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the market by a significant amount (see the details here).

Phillip Goldstein of Bulldog Investors

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, legendary investor Bill Miller told investors to sell 7 extremely popular recession stocks last month. So, we went through his list and recommended another stock with 100% upside potential instead. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we’re going to take a peek at the key hedge fund action encompassing 180 Degree Capital Corp. (NASDAQ:TURN).

How have hedgies been trading 180 Degree Capital Corp. (NASDAQ:TURN)?

Heading into the second quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TURN over the last 18 quarters. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).

Among these funds, Ariel Investments held the most valuable stake in 180 Degree Capital Corp. (NASDAQ:TURN), which was worth $4 million at the end of the third quarter. On the second spot was Ancora Advisors which amassed $0.7 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 Ariel Investments allocated the biggest weight to 180 Degree Capital Corp. (NASDAQ:TURN), around 0.07% of its 13F portfolio. Ancora Advisors is also relatively very bullish on the stock, designating 0.03 percent of its 13F equity portfolio to TURN.

Now, some big names have been driving this bullishness. Bulldog Investors, managed by Phillip Goldstein, Andrew Dakos and Steven Samuels, initiated the most outsized position in 180 Degree Capital Corp. (NASDAQ:TURN). Bulldog Investors had $0 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to 180 Degree Capital Corp. (NASDAQ:TURN). We will take a look at Portman Ridge Finance Corporation (NASDAQ:PTMN), TESSCO Technologies, Inc. (NASDAQ:TESS), Communications Systems, Inc. (NASDAQ:JCS), and Onconova Therapeutics, Inc. (NASDAQ:ONTX). This group of stocks’ market values are similar to TURN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PTMN 8 3657 2
TESS 2 3368 -3
JCS 3 6388 -1
ONTX 1 55 -3
Average 3.5 3367 -1.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 3.5 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $5 million in TURN’s case. Portman Ridge Finance Corporation (NASDAQ:PTMN) is the most popular stock in this table. On the other hand Onconova Therapeutics, Inc. (NASDAQ:ONTX) is the least popular one with only 1 bullish hedge fund positions. 180 Degree Capital Corp. (NASDAQ:TURN) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 7.9% in 2020 through May 22nd but beat the market by 15.6 percentage points. A small number of hedge funds were also right about betting on TURN, though not to the same extent, as the stock returned 14.7% during the second quarter and outperformed the market.

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