The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Titan Medical Inc. (NASDAQ:TMDI).
Is TMDI a good stock to buy? Titan Medical Inc. (NASDAQ:TMDI) has experienced a decrease in hedge fund sentiment of late. Titan Medical Inc. (NASDAQ:TMDI) was in 4 hedge funds’ portfolios at the end of March. The all time high for this statistic is 6. Our calculations also showed that TMDI isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
To most traders, hedge funds are perceived as slow, outdated financial vehicles of years past. While there are over 8000 funds in operation today, Our researchers choose to focus on the aristocrats of this club, approximately 850 funds. Most estimates calculate that this group of people command most of all hedge funds’ total asset base, and by following their first-class picks, Insider Monkey has come up with numerous investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
John Overdeck of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. 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 homepage. With all of this in mind we’re going to go over the recent hedge fund action encompassing Titan Medical Inc. (NASDAQ:TMDI).
Do Hedge Funds Think TMDI Is A Good Stock To Buy Now?
At the end of March, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of -33% from the fourth quarter of 2020. On the other hand, there were a total of 4 hedge funds with a bullish position in TMDI 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.
According to Insider Monkey’s hedge fund database, Renaissance Technologies, holds the largest position in Titan Medical Inc. (NASDAQ:TMDI). Renaissance Technologies has a $1.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $0.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining members of the smart money with similar optimism encompass Ken Griffin’s Citadel Investment Group, Seth Cogswell’s Running Oak Capital and . In terms of the portfolio weights assigned to each position Running Oak Capital allocated the biggest weight to Titan Medical Inc. (NASDAQ:TMDI), around 0.01% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.0023 percent of its 13F equity portfolio to TMDI.
Judging by the fact that Titan Medical Inc. (NASDAQ:TMDI) has experienced falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of fund managers that slashed their positions entirely in the first quarter. It’s worth mentioning that Mike Masters’s Masters Capital Management dropped the biggest stake of the 750 funds watched by Insider Monkey, worth close to $2.1 million in stock, and Steven Boyd’s Armistice Capital was right behind this move, as the fund dropped about $0.5 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds in the first quarter.
Let’s also examine hedge fund activity in other stocks similar to Titan Medical Inc. (NASDAQ:TMDI). We will take a look at SandRidge Energy Inc. (NYSE:SD), Oak Valley Bancorp (CA) (NASDAQ:OVLY), Aziyo Biologics, Inc. (NASDAQ:AZYO), Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA), Navios Maritime Holdings Inc. (NYSE:NM), Orgenesis Inc. (NASDAQ:ORGS), and United Security Bancshares (NASDAQ:UBFO). All of these stocks’ market caps resemble TMDI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SD | 18 | 40591 | 5 |
| OVLY | 1 | 498 | 0 |
| AZYO | 6 | 15198 | -1 |
| HEPA | 4 | 1131 | 0 |
| NM | 5 | 8952 | 4 |
| ORGS | 3 | 1715 | 1 |
| UBFO | 2 | 1717 | -1 |
| Average | 5.6 | 9972 | 1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.6 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $2 million in TMDI’s case. SandRidge Energy Inc. (NYSE:SD) is the most popular stock in this table. On the other hand Oak Valley Bancorp (CA) (NASDAQ:OVLY) is the least popular one with only 1 bullish hedge fund positions. Titan Medical Inc. (NASDAQ:TMDI) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TMDI is 31.8. 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 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 17.2% in 2021 through June 11th and surpassed the market again by 3.3 percentage points. Unfortunately TMDI wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); TMDI investors were disappointed as the stock returned 4.7% since the end of March (through 6/11) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Titan Medical Inc (NASDAQ:TMDI)
Follow Titan Medical Inc (NASDAQ:TMDI)
Disclosure: None. This article was originally published at Insider Monkey.
