As the market is dragged down by short-term sentiment influenced by the accommodating US interest rate environment, virus news and stimulus spending, many smart investors are starting to be cautious about the current uptrend since March 2020 and to hedge or reduce many of their long positions. Some fund managers bet on the Dow Jones reaching 40,000 to generate solid returns. However, as we know, big investors usually buy stocks with strong fundamentals that can generate gains in both bullish and bearish markets, which is why we believe we can profit from their imitation. In this article, we’ll take a look at the smart money sentiment surrounding Ucommune International Ltd (NASDAQ: UK).
Is the UK a good stock to buy? The fund managers took an optimistic view. The number of bullish bets on hedge funds has increased by 1 recently. Ucommune International Ltd (NASDAQ: UK) was listed in 4 hedge fund portfolios at the end of March. The all-time high for this statistic was 3. This means the bullish number of hedge fund positions in this stock is currently at its all-time high. Our calculations also showed that the UK is not among the top 30 most popular stocks among hedge funds (click for Q1 rank). There were 3 hedge funds in our database with UK positions at the end of the fourth quarter.
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Bart Baum of Ionic Capital Management
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Do hedge funds think the UK is a good stock to buy now?
At the end of the first quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from the fourth quarter of 2020. By comparison, 0 hedge funds were holding stocks or options. bullish buying in the UK per year. since. With smart money positions experiencing their usual ebb and flow, there are a few notable hedge fund managers who were significantly increasing their stakes (or already building up large positions).
Looking at institutional investors followed by Insider Monkey, Sabby Capital, managed by Hal Mintz, holds the number one position in Ucommune International Ltd (NASDAQ: UK). Sabby Capital has a position of $ 0.4 million in the stock, comprising 0.1% of its 13F portfolio. In second place is Citadel Investment Group, managed by Ken Griffin, which has a position of $ 0.2 million; less than 0.1 %% of its 13F portfolio is allocated to the security. Some other professional fund managers who hold long positions are Weiss Asset Management by Andrew Weiss, Weiss Asset Management by Andrew Weiss and Ionic Capital Management by Bart Baum. In terms of the portfolio weights assigned to each position, Sabby Capital assigned the largest weight to Ucommune International Ltd (NASDAQ: UK), around 0.08% of its 13F portfolio. Ionic Capital Management is also relatively very bullish on the stock, designating 0.0027% of its 13F stock portfolio in the UK.
As might be expected, the major hedge funds have jumped head first into Ucommune International Ltd (NASDAQ: UK). Sabby Capital, managed by Hal Mintz, established the largest position in Ucommune International Ltd (NASDAQ: UK). Sabby Capital had invested $ 0.4 million in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $ 0.2 million position during the quarter.
Now let’s take a look at the activity of hedge funds in other stocks similar to Ucommune International Ltd (NASDAQ: UK). These stocks are Resonant Inc. (NASDAQ: RESN), ACNB Corporation (NASDAQ: ACNB), NuCana plc (NASDAQ: NCNA), Atossa Genetics Inc. (NASDAQ: ATOS), Clever Leaves Holdings Inc. (NASDAQ: CLVR), Taiwan Liposome Company, Ltd. (NASDAQ: TLC) and Target Hospitality Corp. (NASDAQ: TH). The market valuations of this group of shares correspond to the market valuation of the United Kingdom.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position RESN, 6.5809.2 ACNB, 1.1099.0 NCNA, 7.16780.0 ATOS, 6.7811.3 CLVR , 8,28927, -1 TLC, 1,125,0 TH, 8,13213, -1 Medium, 5.3,10538,0.4 [/table]
Check the table here if you have formatting issues.
As you can see, these stocks had an average of 5.3 hedge funds with bullish positions and the average amount invested in these stocks was $ 11 million. That figure was $ 1 million in the case of the UK. Clever Leaves Holdings Inc. (NASDAQ: CLVR) is the most popular stock in this chart. On the other hand, ACNB Corporation (NASDAQ: ACNB) is the least popular with only 1 bullish hedge fund positions. Ucommune International Ltd (NASDAQ: UK) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for the UK is 57.4. Stocks with a 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 prefer to spend our time researching the stocks that hedge funds are accumulating on. Our calculations showed that the 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 17.2% in 2021 through June 11 and again topped the market by 3.3 percentage points. Unfortunately, the UK was not as popular as these 5 stocks (hedge fund sentiment was rather bearish); UK investors were disappointed as the stock has returned -24.7% since late March (through 6/11) and underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market in 2021.
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Disclosure: none. This article originally appeared on Insider Monkey.