In this article you are going to find out whether hedge funds think Daxor Corporation (NYSE:DXR) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Daxor Corporation (NYSE:DXR) has experienced an increase in activity from the world’s largest hedge funds in recent months. Our calculations also showed that DXR 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.
If you’d ask most market participants, hedge funds are seen as underperforming, old financial tools of yesteryear. While there are more than 8000 funds with their doors open today, Our researchers hone in on the moguls of this club, approximately 850 funds. These money managers orchestrate the majority of the smart money’s total asset base, and by tracking their top equity investments, Insider Monkey has unearthed a number of investment strategies that have historically surpassed the market. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
Wall Street Bull
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. Now let’s take a glance at the key hedge fund action surrounding Daxor Corporation (NYSE:DXR).
What have hedge funds been doing with Daxor Corporation (NYSE:DXR)?
Heading into the second quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards DXR over the last 18 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
The largest stake in Daxor Corporation (NYSE:DXR) was held by Renaissance Technologies, which reported holding $0.2 million worth of stock at the end of September. It was followed by Diametric Capital with a $0.2 million position. The only other hedge fund that is bullish on the company was Springbok Capital.
With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Diametric Capital, managed by Nick Thakore, initiated the biggest position in Daxor Corporation (NYSE:DXR). Diametric Capital had $0.2 million invested in the company at the end of the quarter.
Let’s also examine hedge fund activity in other stocks similar to Daxor Corporation (NYSE:DXR). We will take a look at Hovnanian Enterprises, Inc. (NYSE:HOV), Zovio Inc. (NASDAQ:ZVO), Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH), and Bellerophon Therapeutics, Inc. (NASDAQ:BLPH). All of these stocks’ market caps are closest to DXR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HOV | 5 | 5682 | -2 |
| ZVO | 8 | 12673 | -4 |
| PPIH | 2 | 5111 | -1 |
| BLPH | 4 | 8729 | 2 |
| Average | 4.75 | 8049 | -1.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.75 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $0 million in DXR’s case. Zovio Inc. (NASDAQ:ZVO) is the most popular stock in this table. On the other hand Perma-Pipe International Holdings, Inc. (NASDAQ:PPIH) is the least popular one with only 2 bullish hedge fund positions. Daxor Corporation (NYSE:DXR) is not the least popular stock in this group but hedge fund interest is still below average. 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 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 and surpassed the market by 15.6 percentage points. Unfortunately DXR wasn’t nearly as popular as these 10 stocks (hedge fund sentiment was quite bearish); DXR investors were disappointed as the stock returned 4.2% during the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Disclosure: None. This article was originally published at Insider Monkey.