Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 817 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Tsakos Energy Navigation Ltd. (NYSE:TNP), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Tsakos Energy Navigation Ltd. (NYSE:TNP) investors should be aware of a decrease in hedge fund interest lately. Tsakos Energy Navigation Ltd. (NYSE:TNP) was in 4 hedge funds’ portfolios at the end of September. The all time high for this statistics is 19. Our calculations also showed that TNP 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 has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 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 underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
David Iben of Kopernik Global Investors
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. With all of this in mind let’s take a glance at the new hedge fund action surrounding Tsakos Energy Navigation Ltd. (NYSE:TNP).
What does smart money think about Tsakos Energy Navigation Ltd. (NYSE:TNP)?
At Q3’s end, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -56% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in TNP over the last 21 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, David Iben’s Kopernik Global Investors has the largest position in Tsakos Energy Navigation Ltd. (NYSE:TNP), worth close to $8.2 million, corresponding to 1.3% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, which holds a $2.8 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions include Ken Griffin’s Citadel Investment Group, Greg Eisner’s Engineers Gate Manager and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Kopernik Global Investors allocated the biggest weight to Tsakos Energy Navigation Ltd. (NYSE:TNP), around 1.27% of its 13F portfolio. Engineers Gate Manager is also relatively very bullish on the stock, earmarking 0.01 percent of its 13F equity portfolio to TNP.
Due to the fact that Tsakos Energy Navigation Ltd. (NYSE:TNP) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedgies who were dropping their full holdings last quarter. Intriguingly, Nick Thakore’s Diametric Capital sold off the largest position of all the hedgies followed by Insider Monkey, comprising close to $1.5 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also cut its stock, about $0.7 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 5 funds last quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tsakos Energy Navigation Ltd. (NYSE:TNP) but similarly valued. These stocks are Horizon Global Corp (NYSE:HZN), Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA), Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), BioSig Technologies, Inc. (NASDAQ:BSGM), ContraFect Corp (NASDAQ:CFRX), BiomX Inc. (NYSE:PHGE), and GlycoMimetics, Inc. (NASDAQ:GLYC). This group of stocks’ market caps match TNP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HZN | 3 | 16612 | 0 |
| AYLA | 3 | 10125 | -1 |
| CRBP | 8 | 16655 | -6 |
| BSGM | 3 | 294 | 0 |
| CFRX | 11 | 22007 | 1 |
| PHGE | 6 | 17882 | -1 |
| GLYC | 12 | 45240 | -2 |
| Average | 6.6 | 18402 | -1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 6.6 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $11 million in TNP’s case. GlycoMimetics, Inc. (NASDAQ:GLYC) is the most popular stock in this table. On the other hand Horizon Global Corp (NYSE:HZN) is the least popular one with only 3 bullish hedge fund positions. Tsakos Energy Navigation Ltd. (NYSE:TNP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TNP is 11.9. 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. A small number of hedge funds were also right about betting on TNP as the stock returned 16.5% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.
Follow Tsakos Energy Navigation Ltd (NYSE:TNP)
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Disclosure: None. This article was originally published at Insider Monkey.
