A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Seelos Therapeutics, Inc. (NASDAQ:SEEL).
Seelos Therapeutics, Inc. (NASDAQ:SEEL) has seen an increase in enthusiasm from smart money in recent months. Seelos Therapeutics, Inc. (NASDAQ:SEEL) was in 4 hedge funds’ portfolios at the end of September. 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 2 hedge funds in our database with SEEL holdings at the end of June. Our calculations also showed that SEEL 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.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 113% since March 2017 and outperformed the S&P 500 ETFs by more than 66 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That’s why we believe hedge fund sentiment is a 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 10 most profitable companies in the world 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 check out the new hedge fund action surrounding Seelos Therapeutics, Inc. (NASDAQ:SEEL).
How have hedgies been trading Seelos Therapeutics, Inc. (NASDAQ:SEEL)?
At third quarter’s end, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 100% from the second quarter of 2020. By comparison, 3 hedge funds held shares or bullish call options in SEEL a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, holds the most valuable position in Seelos Therapeutics, Inc. (NASDAQ:SEEL). Renaissance Technologies has a $0.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second largest stake is held by John Overdeck and David Siegel of Two Sigma Advisors, with a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other professional money managers with similar optimism include Philip Hempleman’s Ardsley Partners, Ken Griffin’s Citadel Investment Group and . In terms of the portfolio weights assigned to each position Ardsley Partners allocated the biggest weight to Seelos Therapeutics, Inc. (NASDAQ:SEEL), around 0.01% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, designating 0.0006 percent of its 13F equity portfolio to SEEL.
As one would reasonably expect, specific money managers have jumped into Seelos Therapeutics, Inc. (NASDAQ:SEEL) headfirst. Two Sigma Advisors, managed by John Overdeck and David Siegel, created the largest position in Seelos Therapeutics, Inc. (NASDAQ:SEEL). Two Sigma Advisors had $0.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0 million position during the quarter.
Let’s now review hedge fund activity in other stocks similar to Seelos Therapeutics, Inc. (NASDAQ:SEEL). These stocks are JMP Group LLC (NYSE:JMP), Recro Pharma Inc (NASDAQ:REPH), HighPoint Resources Corporation (NYSE:HPR), Income Opportunity Realty Investors, Inc. (NYSE:IOR), Streamline Health Solutions Inc. (NASDAQ:STRM), Natural Alternatives International, Inc. (NASDAQ:NAII), and Hudson Technologies, Inc. (NASDAQ:HDSN). This group of stocks’ market valuations are similar to SEEL’s market valuation.
|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 4.9 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $1 million in SEEL’s case. Recro Pharma Inc (NASDAQ:REPH) is the most popular stock in this table. On the other hand Income Opportunity Realty Investors, Inc. (NYSE:IOR) is the least popular one with only 1 bullish hedge fund positions. Seelos Therapeutics, Inc. (NASDAQ:SEEL) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for SEEL is 49.5. 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 beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on SEEL, though not to the same extent, as the stock returned 9.6% since the end of Q3 (through November 27th) and outperformed the market.
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Disclosure: None. This article was originally published at Insider Monkey.