Hedge Funds Are Selling Tenax Therapeutics Inc (TENX)

In this article we will analyze whether Tenax Therapeutics Inc (NASDAQ:TENX) 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.

Tenax Therapeutics Inc (NASDAQ:TENX) shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. Tenax Therapeutics Inc (NASDAQ:TENX) was in 3 hedge funds’ portfolios at the end of March. The all time high for this statistic is 10. Our calculations also showed that TENX 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.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $28 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. 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. Now let’s take a peek at the recent hedge fund action regarding Tenax Therapeutics Inc (NASDAQ:TENX).

Do Hedge Funds Think TENX Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -25% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in TENX 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, Armistice Capital held the most valuable stake in Tenax Therapeutics Inc (NASDAQ:TENX), which was worth $3.8 million at the end of the fourth quarter. On the second spot was Renaissance Technologies which amassed $1.4 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 Armistice Capital allocated the biggest weight to Tenax Therapeutics Inc (NASDAQ:TENX), around 0.09% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, earmarking 0.0018 percent of its 13F equity portfolio to TENX.

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Two Sigma Advisors. 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 none of the 750+ hedge funds tracked by Insider Monkey identified TENX as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks similar to Tenax Therapeutics Inc (NASDAQ:TENX). These stocks are Unico American Corporation (NASDAQ:UNAM), Summer Infant, Inc. (NASDAQ:SUMR), AmpliTech Group, Inc. (NASDAQ:AMPG), Reliance Global Group, Inc. (NASDAQ:RELI), Carver Bancorp, Inc. (NASDAQ:CARV), GeoVax Labs, Inc. (NASDAQ:GOVX), and Optical Cable Corporation (NASDAQ:OCC). This group of stocks’ market valuations match TENX’s market valuation.

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As you can see these stocks had an average of 1.9 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $5 million in TENX’s case. Summer Infant, Inc. (NASDAQ:SUMR) is the most popular stock in this table. On the other hand Unico American Corporation (NASDAQ:UNAM) is the least popular one with only 1 bullish hedge fund positions. Tenax Therapeutics Inc (NASDAQ:TENX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TENX is 63. 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 gained 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. Hedge funds were also right about betting on TENX as the stock returned 9.5% since the end of Q1 (through 6/11) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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