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 June. At Insider Monkey, we follow nearly 900 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 DHT Holdings Inc (NYSE:DHT), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
DHT Holdings Inc (NYSE:DHT) investors should be aware of a decrease in hedge fund interest of late. DHT Holdings Inc (NYSE:DHT) was in 20 hedge funds’ portfolios at the end of June. The all time high for this statistic is 34. There were 22 hedge funds in our database with DHT positions at the end of the first quarter. Our calculations also showed that DHT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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Do Hedge Funds Think DHT Is A Good Stock To Buy Now?
At Q2’s end, a total of 20 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from one quarter earlier. On the other hand, there were a total of 18 hedge funds with a bullish position in DHT a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in DHT Holdings Inc (NYSE:DHT) was held by Renaissance Technologies, which reported holding $33 million worth of stock at the end of June. It was followed by Hosking Partners with a $23.1 million position. Other investors bullish on the company included Impala Asset Management, 683 Capital Partners, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Amitell Capital allocated the biggest weight to DHT Holdings Inc (NYSE:DHT), around 3.13% of its 13F portfolio. Birch Grove Capital is also relatively very bullish on the stock, earmarking 0.97 percent of its 13F equity portfolio to DHT.
Judging by the fact that DHT Holdings Inc (NYSE:DHT) has faced a decline in interest from the entirety of the hedge funds we track, we can see that there was a specific group of funds who were dropping their entire stakes by the end of the second quarter. It’s worth mentioning that Cliff Asness’s AQR Capital Management sold off the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling about $0.9 million in stock. Donald Sussman’s fund, Paloma Partners, also sold off its stock, about $0.7 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds by the end of the second quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as DHT Holdings Inc (NYSE:DHT) but similarly valued. These stocks are NextGen Healthcare, Inc. (NASDAQ:NXGN), Renalytix plc (NASDAQ:RNLX), Personalis, Inc. (NASDAQ:PSNL), Cryolife Inc (NYSE:CRY), Huron Consulting Group Inc. (NASDAQ:HURN), Accel Entertainment, Inc. (NYSE:ACEL), and Central Securities Corporation (NYSE:CET). This group of stocks’ market caps are closest to DHT’s market cap.
|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 10.9 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $123 million in DHT’s case. NextGen Healthcare, Inc. (NASDAQ:NXGN) is the most popular stock in this table. On the other hand Central Securities Corporation (NYSE:CET) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks DHT Holdings Inc (NYSE:DHT) is more popular among hedge funds. Our overall hedge fund sentiment score for DHT is 70.6. 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 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 returned 24% in 2021 through October 22nd but still managed to beat the market by 1.6 percentage points. Hedge funds were also right about betting on DHT as the stock returned 3.9% since the end of June (through 10/22) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.