At Insider Monkey, we pore over the filings of nearly 817 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not Apollo Medical Holdings, Inc. (NASDAQ:AMEH) makes for a good investment right now.
Is AMEH a good stock to buy now? Hedge funds were getting more bullish. The number of bullish hedge fund positions rose by 4 in recent months. Apollo Medical Holdings, Inc. (NASDAQ:AMEH) was in 7 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 4. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that AMEH isn’t among the 30 most popular stocks among hedge funds (click for Q3 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.
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At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 5 best cheap stocks to buy according to Ray Dalio to identify stocks with upside potential. 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 website. Now we’re going to view the latest hedge fund action regarding Apollo Medical Holdings, Inc. (NASDAQ:AMEH).
Hedge fund activity in Apollo Medical Holdings, Inc. (NASDAQ:AMEH)
At the end of September, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of 133% from one quarter earlier. On the other hand, there were a total of 2 hedge funds with a bullish position in AMEH a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Apollo Medical Holdings, Inc. (NASDAQ:AMEH) was held by Millennium Management, which reported holding $1.3 million worth of stock at the end of September. It was followed by Winton Capital Management with a $0.6 million position. Other investors bullish on the company included Two Sigma Advisors, Citadel Investment Group, and ExodusPoint Capital. In terms of the portfolio weights assigned to each position Winton Capital Management allocated the biggest weight to Apollo Medical Holdings, Inc. (NASDAQ:AMEH), around 0.02% of its 13F portfolio. ExodusPoint Capital is also relatively very bullish on the stock, setting aside 0.01 percent of its 13F equity portfolio to AMEH.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, initiated the most outsized position in Apollo Medical Holdings, Inc. (NASDAQ:AMEH). Millennium Management had $1.3 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Michael Gelband’s ExodusPoint Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital).
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Apollo Medical Holdings, Inc. (NASDAQ:AMEH) but similarly valued. These stocks are Frequency Therapeutics, Inc. (NASDAQ:FREQ), Crescent Point Energy Corp (NYSE:CPG), HighPeak Energy, Inc. (NASDAQ:HPK), Kearny Financial Corp. (NASDAQ:KRNY), Bristow Group, Inc. (NYSE:VTOL), Arch Resources, Inc. (NYSE:ARCH), and Magic Software Enterprises Ltd. (NASDAQ:MGIC). All of these stocks’ market caps match AMEH’s market cap.
|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 10.7 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $4 million in AMEH’s case. Arch Resources, Inc. (NYSE:ARCH) is the most popular stock in this table. On the other hand HighPeak Energy, Inc. (NASDAQ:HPK) is the least popular one with only 1 bullish hedge fund positions. Apollo Medical Holdings, Inc. (NASDAQ:AMEH) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for AMEH is 51. 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 negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 31.6% in 2020 through December 2nd and surpassed the market again by 16 percentage points. Unfortunately AMEH wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); AMEH investors were disappointed as the stock returned -0.5% since the end of September (through 12/2) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.