The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, a week after the market trough. In this article we look at what those investors think of Streamline Health Solutions Inc. (NASDAQ:STRM).
Streamline Health Solutions Inc. (NASDAQ:STRM) shares haven’t seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds’ portfolios at the end of the first quarter of 2020. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as TransGlobe Energy Corporation (NASDAQ:TGA), Mereo BioPharma Group plc (NASDAQ:MREO), and Perceptron, Inc. (NASDAQ:PRCP) to gather more data points. Our calculations also showed that STRM 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 investors, hedge funds are assumed to be underperforming, old financial tools of yesteryear. While there are over 8000 funds in operation at the moment, We choose to focus on the aristocrats of this group, about 850 funds. It is estimated that this group of investors oversee the lion’s share of the hedge fund industry’s total capital, and by watching their first-class investments, Insider Monkey has formulated a number of investment strategies that have historically surpassed Mr. Market. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points per 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 .
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. 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 the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s review the recent hedge fund action encompassing Streamline Health Solutions Inc. (NASDAQ:STRM).
How are hedge funds trading Streamline Health Solutions Inc. (NASDAQ:STRM)?
At the end of the first quarter, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the fourth quarter of 2019. On the other hand, there were a total of 5 hedge funds with a bullish position in STRM a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Tamarack Capital Management held the most valuable stake in Streamline Health Solutions Inc. (NASDAQ:STRM), which was worth $3.7 million at the end of the third quarter. On the second spot was Harbert Management which amassed $2.8 million worth of shares. Nantahala Capital Management, G2 Investment Partners Management, and Renaissance Technologies were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Harbert Management allocated the biggest weight to Streamline Health Solutions Inc. (NASDAQ:STRM), around 4.75% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, designating 1.39 percent of its 13F equity portfolio to STRM.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the first quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s now take a look at hedge fund activity in other stocks similar to Streamline Health Solutions Inc. (NASDAQ:STRM). These stocks are TransGlobe Energy Corporation (NASDAQ:TGA), Mereo BioPharma Group plc (NASDAQ:MREO), Perceptron, Inc. (NASDAQ:PRCP), and Riot Blockchain, Inc (NASDAQ:RIOT). This group of stocks’ market values match STRM’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 3.25 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $10 million in STRM’s case. Perceptron, Inc. (NASDAQ:PRCP) is the most popular stock in this table. On the other hand Mereo BioPharma Group plc (NASDAQ:MREO) is the least popular one with only 1 bullish hedge fund positions. Streamline Health Solutions Inc. (NASDAQ:STRM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but 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 8.3% in 2020 through the end of May but beat the market by 13.2 percentage points. Unfortunately STRM wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on STRM were disappointed as the stock returned 9.4% during the same time period 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 many of these stocks already outperformed the market so far this year.
Disclosure: None. This article was originally published at Insider Monkey.