The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st. We at Insider Monkey have made an extensive database of more than 866 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Radius Global Infrastructure, Inc. (NASDAQ:RADI) based on those filings.
Is Radius Global Infrastructure, Inc. (NASDAQ:RADI) going to take off soon? Money managers were in a bullish mood. The number of long hedge fund bets increased by 3 recently. Radius Global Infrastructure, Inc. (NASDAQ:RADI) was in 17 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 14. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that RADI isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Emanuel Friedman of EJF Capital
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Do Hedge Funds Think RADI Is A Good Stock To Buy Now?
At Q1’s end, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 21% from one quarter earlier. By comparison, 0 hedge funds held shares or bullish call options in RADI a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Centerbridge Partners was the largest shareholder of Radius Global Infrastructure, Inc. (NASDAQ:RADI), with a stake worth $147 million reported as of the end of March. Trailing Centerbridge Partners was Monarch Alternative Capital, which amassed a stake valued at $69.8 million. Third Point, Alyeska Investment Group, and Moore Global Investments 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 Centerbridge Partners allocated the biggest weight to Radius Global Infrastructure, Inc. (NASDAQ:RADI), around 13.67% of its 13F portfolio. Monarch Alternative Capital is also relatively very bullish on the stock, setting aside 4.73 percent of its 13F equity portfolio to RADI.
As aggregate interest increased, some big names have been driving this bullishness. Becker Drapkin Management, managed by Matthew Drapkin and Steven R. Becker, initiated the biggest position in Radius Global Infrastructure, Inc. (NASDAQ:RADI). Becker Drapkin Management had $2.9 million invested in the company at the end of the quarter. Emanuel J. Friedman’s EJF Capital also made a $0.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Greg Eisner’s Engineers Gate Manager, and Dmitry Balyasny’s Balyasny Asset Management.
Let’s check out hedge fund activity in other stocks similar to Radius Global Infrastructure, Inc. (NASDAQ:RADI). These stocks are Stoneridge, Inc. (NYSE:SRI), ReneSola Ltd. (NYSE:SOL), MSG Networks Inc (NYSE:MSGN), Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), AudioCodes Ltd. (NASDAQ:AUDC), Viad Corp (NYSE:VVI), and Altus Midstream Company (NASDAQ:ALTM). All of these stocks’ market caps match RADI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SRI | 10 | 65870 | -2 |
| SOL | 3 | 146379 | 0 |
| MSGN | 18 | 227546 | -5 |
| GDYN | 12 | 44687 | -1 |
| AUDC | 15 | 40991 | 0 |
| VVI | 13 | 107466 | -6 |
| ALTM | 4 | 2334 | 0 |
| Average | 10.7 | 90753 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.7 hedge funds with bullish positions and the average amount invested in these stocks was $91 million. That figure was $356 million in RADI’s case. MSG Networks Inc (NYSE:MSGN) is the most popular stock in this table. On the other hand ReneSola Ltd. (NYSE:SOL) is the least popular one with only 3 bullish hedge fund positions. Radius Global Infrastructure, Inc. (NASDAQ:RADI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for RADI is 84.7. 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 positive signal but 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 28.5% in 2021 through July 23rd and beat the market again by 10.1 percentage points. Unfortunately RADI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on RADI were disappointed as the stock returned 3.7% since the end of March (through 7/23) 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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
