The Insider Monkey team has completed processing the quarterly 13F filings for the September 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 U.S. Global Investors, Inc. (NASDAQ:GROW).
U.S. Global Investors, Inc. (NASDAQ:GROW) has seen an increase in activity from the world’s largest hedge funds of late. U.S. Global Investors, Inc. (NASDAQ:GROW) was in 5 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 5. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that GROW 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.
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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 15 best blue chip stocks 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. 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 website. Now let’s check out the latest hedge fund action regarding U.S. Global Investors, Inc. (NASDAQ:GROW).
How have hedgies been trading U.S. Global Investors, Inc. (NASDAQ:GROW)?
Heading into the fourth quarter of 2020, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 150% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in GROW over the last 21 quarters. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Nick Thakore’s Diametric Capital has the number one position in U.S. Global Investors, Inc. (NASDAQ:GROW), worth close to $2.3 million, comprising 1.7% of its total 13F portfolio. Coming in second is Royce & Associates, managed by Chuck Royce, which holds a $1.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that hold long positions include Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital), Renaissance Technologies and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Diametric Capital allocated the biggest weight to U.S. Global Investors, Inc. (NASDAQ:GROW), around 1.71% of its 13F portfolio. Prelude Capital (previously Springbok Capital) is also relatively very bullish on the stock, earmarking 0.07 percent of its 13F equity portfolio to GROW.
Now, key hedge funds have been driving this bullishness. Diametric Capital, managed by Nick Thakore, created the most valuable position in U.S. Global Investors, Inc. (NASDAQ:GROW). Diametric Capital had $2.3 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also initiated a $1.5 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.
Let’s go over hedge fund activity in other stocks similar to U.S. Global Investors, Inc. (NASDAQ:GROW). These stocks are Vaccinex, Inc. (NASDAQ:VCNX), Communications Systems, Inc. (NASDAQ:JCS), Nine Energy Service, Inc. (NYSE:NINE), Inuvo, Inc. (NYSE:INUV), SOS Limited (NYSE:SOS), Profire Energy, Inc. (NASDAQ:PFIE), and Quest Resource Holding Corp (NASDAQ:QRHC). All of these stocks’ market caps match GROW’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 3.1 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $6 million in GROW’s case. Nine Energy Service, Inc. (NYSE:NINE) is the most popular stock in this table. On the other hand Vaccinex, Inc. (NASDAQ:VCNX) is the least popular one with only 1 bullish hedge fund positions. U.S. Global Investors, Inc. (NASDAQ:GROW) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GROW is 78. 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. Hedge funds were also right about betting on GROW as the stock returned 43.2% since the end of Q3 (through 11/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.