The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on September 30th, about a month before the elections. We at Insider Monkey have made an extensive database of more than 817 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Beam Global (NASDAQ:BEEM) based on those filings.
Is Beam Global (BEEM) a good stock to buy now? BEEM investors should pay attention to an increase in activity from the world’s largest hedge funds lately. Beam Global (NASDAQ:BEEM) was in 5 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. There were 3 hedge funds in our database with BEEM holdings at the end of June. Our calculations also showed that BEEM 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.
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. 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 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
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 15 best blue chip stocks to pick the best large-cap stocks to buy. 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 take a peek at the key hedge fund action encompassing Beam Global (NASDAQ:BEEM).
What have hedge funds been doing with Beam Global (NASDAQ:BEEM)?
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a change of 67% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards BEEM over the last 21 quarters. With hedge funds’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Till Bechtolsheimer’s Arosa Capital Management has the largest position in Beam Global (NASDAQ:BEEM), worth close to $5.2 million, corresponding to 0.8% of its total 13F portfolio. On Arosa Capital Management’s heels is Arosa Capital Management, managed by Till Bechtolsheimer, which holds a $2 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish contain Chuck Royce’s Royce & Associates, Sander Gerber’s Hudson Bay Capital Management and Renaissance Technologies. In terms of the portfolio weights assigned to each position Arosa Capital Management allocated the biggest weight to Beam Global (NASDAQ:BEEM), around 0.8% of its 13F portfolio. Arosa Capital Management is also relatively very bullish on the stock, designating 0.31 percent of its 13F equity portfolio to BEEM.
As industrywide interest jumped, key money managers have been driving this bullishness. Royce & Associates, managed by Chuck Royce, assembled the largest position in Beam Global (NASDAQ:BEEM). Royce & Associates had $0.6 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.1 million position during the quarter.
Let’s also examine hedge fund activity in other stocks similar to Beam Global (NASDAQ:BEEM). These stocks are The Alkaline Water Company Inc. (NASDAQ:WTER), Enlivex Therapeutics Ltd. (NASDAQ:ENLV), Corenergy Infrastructure Trust Inc (NYSE:CORR), DiaMedica Therapeutics Inc. (NASDAQ:DMAC), CF Bankshares Inc (NASDAQ:CFBK), Hall of Fame Resort & Entertainment Company (NASDAQ:HOFV), and Old Point Financial Corporation (NASDAQ:OPOF). This group of stocks’ market values are closest to BEEM’s market value.
|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 3.7 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $8 million in BEEM’s case. DiaMedica Therapeutics Inc. (NASDAQ:DMAC) is the most popular stock in this table. On the other hand Enlivex Therapeutics Ltd. (NASDAQ:ENLV) is the least popular one with only 1 bullish hedge fund positions. Beam Global (NASDAQ:BEEM) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BEEM is 59.2. 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 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 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. Hedge funds were also right about betting on BEEM as the stock returned 190.7% since the end of Q3 (through 11/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.