In this article we will take a look at whether hedge funds think Aurora Mobile Limited (NASDAQ:JG) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Aurora Mobile Limited (NASDAQ:JG) investors should pay attention to an increase in hedge fund sentiment recently. Aurora Mobile Limited (NASDAQ:JG) was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that JG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the financial world there are plenty of metrics stock traders can use to value publicly traded companies. Two of the best metrics are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the best picks of the top investment managers can outperform the broader indices by a significant margin (see the details here). 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 .
Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $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. Now let’s take a look at the key hedge fund action regarding Aurora Mobile Limited (NASDAQ:JG).
Do Hedge Funds Think JG Is A Good Stock To Buy Now?
At first quarter’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 100% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards JG over the last 23 quarters. 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, Renaissance Technologies was the largest shareholder of Aurora Mobile Limited (NASDAQ:JG), with a stake worth $0.9 million reported as of the end of March. Trailing Renaissance Technologies was Millennium Management, which amassed a stake valued at $0.8 million. Citadel Investment Group, Engineers Gate Manager, and Two Sigma Advisors 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 Engineers Gate Manager allocated the biggest weight to Aurora Mobile Limited (NASDAQ:JG), around 0.01% of its 13F portfolio. Paloma Partners is also relatively very bullish on the stock, earmarking 0.0038 percent of its 13F equity portfolio to JG.
Now, key money managers have jumped into Aurora Mobile Limited (NASDAQ:JG) headfirst. Millennium Management, managed by Israel Englander, established the most valuable position in Aurora Mobile Limited (NASDAQ:JG). Millennium Management had $0.8 million invested in the company at the end of the quarter. Greg Eisner’s Engineers Gate Manager also initiated a $0.2 million position during the quarter. The following funds were also among the new JG investors: John Overdeck and David Siegel’s Two Sigma Advisors, Donald Sussman’s Paloma Partners, and Ken Griffin’s Citadel Investment Group.
Let’s now review hedge fund activity in other stocks similar to Aurora Mobile Limited (NASDAQ:JG). We will take a look at SQZ Biotechnologies Company (NYSE:SQZ), Lineage Cell Therapeutics, Inc. (NYSE:LCTX), Fidus Investment Corp (NASDAQ:FDUS), CalAmp Corp. (NASDAQ:CAMP), Aeglea BioTherapeutics, Inc. (NASDAQ:AGLE), PennantPark Investment Corp. (NASDAQ:PNNT), and Spark Energy, Inc. (NASDAQ:SPKE). All of these stocks’ market caps are similar to JG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SQZ | 9 | 41439 | 5 |
| LCTX | 12 | 89089 | 1 |
| FDUS | 5 | 9758 | 1 |
| CAMP | 11 | 248319 | 0 |
| AGLE | 18 | 153254 | 0 |
| PNNT | 8 | 22098 | 0 |
| SPKE | 4 | 12101 | 0 |
| Average | 9.6 | 82294 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.6 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $3 million in JG’s case. Aeglea BioTherapeutics, Inc. (NASDAQ:AGLE) is the most popular stock in this table. On the other hand Spark Energy, Inc. (NASDAQ:SPKE) is the least popular one with only 4 bullish hedge fund positions. Aurora Mobile Limited (NASDAQ:JG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for JG is 45.1. 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 19.3% in 2021 through June 25th and surpassed the market again by 4.8 percentage points. Unfortunately JG wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); JG investors were disappointed as the stock returned -23.9% since the end of March (through 6/25) 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.
Suggested Articles:
- How to Best Use Insider Monkey To Increase Your Returns
- 10 Best Passive Income Stocks in 2021
- 15 Biggest Natural Gas Companies In The World
Disclosure: None. This article was originally published at Insider Monkey.