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 Ferroglobe PLC (NASDAQ:GSM).
Is Ferroglobe PLC (NASDAQ:GSM) an excellent investment right now? The best stock pickers were in an optimistic mood. The number of long hedge fund bets moved up by 5 recently. Ferroglobe PLC (NASDAQ:GSM) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that GSM isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 19 hedge funds in our database with GSM holdings at the end of June.
Steven Cohen of Point72 Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. Keeping this in mind we’re going to analyze the new hedge fund action encompassing Ferroglobe PLC (NASDAQ:GSM).
Do Hedge Funds Think GSM Is A Good Stock To Buy Now?
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 26% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in GSM over the last 25 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.
The largest stake in Ferroglobe PLC (NASDAQ:GSM) was held by Rubric Capital Management, which reported holding $87 million worth of stock at the end of September. It was followed by Hosking Partners with a $29.8 million position. Other investors bullish on the company included Renaissance Technologies, Halcyon Asset Management, and Royce & Associates. In terms of the portfolio weights assigned to each position Halcyon Asset Management allocated the biggest weight to Ferroglobe PLC (NASDAQ:GSM), around 3.91% of its 13F portfolio. Tairen Capital is also relatively very bullish on the stock, designating 2.51 percent of its 13F equity portfolio to GSM.
With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Jericho Capital Asset Management, managed by Josh Resnick, initiated the largest position in Ferroglobe PLC (NASDAQ:GSM). Jericho Capital Asset Management had $12.1 million invested in the company at the end of the quarter. Larry Chen and Terry Zhang’s Tairen Capital also initiated a $10 million position during the quarter. The following funds were also among the new GSM investors: Steve Cohen’s Point72 Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s now take a look at hedge fund activity in other stocks similar to Ferroglobe PLC (NASDAQ:GSM). We will take a look at NGM Biopharmaceuticals, Inc. (NASDAQ:NGM), Immunocore Holdings plc (NASDAQ:IMCR), Sculptor Capital Management, Inc. (NYSE:SCU), Wheels Up Experience Inc. (NYSE:UP), Sixth Street Specialty Lending Inc (NYSE:TSLX), Media General, Inc. (NYSE:MEG), and New York Mortgage Trust, Inc. (NASDAQ:NYMT). This group of stocks’ market valuations are closest to GSM’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NGM | 22 | 202553 | 3 |
| IMCR | 11 | 226764 | 0 |
| SCU | 15 | 84627 | -4 |
| UP | 16 | 123093 | -3 |
| TSLX | 10 | 55745 | 0 |
| MEG | 20 | 131250 | 11 |
| NYMT | 15 | 46671 | -1 |
| Average | 15.6 | 124386 | 0.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.6 hedge funds with bullish positions and the average amount invested in these stocks was $124 million. That figure was $307 million in GSM’s case. NGM Biopharmaceuticals, Inc. (NASDAQ:NGM) is the most popular stock in this table. On the other hand Sixth Street Specialty Lending Inc (NYSE:TSLX) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Ferroglobe PLC (NASDAQ:GSM) is more popular among hedge funds. Our overall hedge fund sentiment score for GSM is 90. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately GSM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GSM were disappointed as the stock returned -24.6% since the end of the third quarter (through 12/9) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
