At Insider Monkey, we pore over the filings of nearly 817 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) makes for a good investment right now.
Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) investors should pay attention to an increase in enthusiasm from smart money recently. Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) was in 3 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 1. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that BHAT 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.
To the average investor there are several tools stock market investors can use to appraise publicly traded companies. A duo of the most under-the-radar tools are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best investment managers can outpace the broader indices by a healthy margin (see the details here).
David Siegel of Two Sigma Advisors
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. 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. Keeping this in mind let’s take a glance at the key hedge fund action surrounding Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT).
What have hedge funds been doing with Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT)?
At third quarter’s end, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 200% from the second quarter of 2020. The graph below displays the number of hedge funds with bullish position in BHAT over the last 21 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, founded by Jim Simons, holds the most valuable position in Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT). Renaissance Technologies has a $0.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Sander Gerber of Hudson Bay Capital Management, with a $0.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. In terms of the portfolio weights assigned to each position Hudson Bay Capital Management allocated the biggest weight to Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT), around 0.0016% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.0004 percent of its 13F equity portfolio to BHAT.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Hudson Bay Capital Management, managed by Sander Gerber, initiated the biggest position in Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT). Hudson Bay Capital Management had $0.1 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0 million position during the quarter.
Let’s also examine hedge fund activity in other stocks similar to Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT). We will take a look at Millendo Therapeutics, Inc. (NASDAQ:MLND), BBQ Holdings, Inc. (NASDAQ:BBQ), Volt Information Sciences, Inc. (NYSE:VOLT), Willamette Valley Vineyards, Inc. (NASDAQ:WVVI), NovaBay Pharmaceuticals, Inc. (NYSE:NBY), AgeX Therapeutics, Inc. (NYSE:AGE), and FreightCar America, Inc. (NASDAQ:RAIL). This group of stocks’ market values match BHAT’s market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MLND,9,6272,1 BBQ,4,12403,-1 VOLT,4,2261,0 WVVI,1,689,0 NBY,2,464,0 AGE,3,2640,-3 RAIL,6,2890,-1 Average,4.1,3946,-0.6 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.1 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $1 million in BHAT’s case. Millendo Therapeutics, Inc. (NASDAQ:MLND) is the most popular stock in this table. On the other hand Willamette Valley Vineyards, Inc. (NASDAQ:WVVI) is the least popular one with only 1 bullish hedge fund positions. Fujian Blue Hat Interactive Entertainment Technology (NASDAQ:BHAT) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BHAT is 49.5. 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 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 28.1% in 2020 through November 23rd and surpassed the market again by 15.4 percentage points. Unfortunately BHAT wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); BHAT investors were disappointed as the stock returned 3.3% since the end of September (through 11/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.