On this article we are going to take a look at the development of hedge fund sentiment in direction of Chemung Monetary Corp. (NASDAQ:CHMG) and decide whether or not it’s a good funding proper now. We at Insider Monkey like to look at what billionaires and hedge funds consider an organization earlier than spending days of analysis on it. Given their 2 and 20 fee construction, hedge funds have extra incentives and assets than the common investor. The funds have entry to skilled networks and get suggestions from trade insiders. In addition they make use of quite a few Ivy League graduates and MBAs. Like everybody else, hedge funds carry out miserably at occasions, however their consensus picks have traditionally outperformed the market after danger changes.
Hedge fund curiosity in Chemung Monetary Corp. (NASDAQ:CHMG) shares was flat on the finish of final quarter. That is often a damaging indicator. Our calculations additionally confirmed that CHMG is not among the many 30 most popular stocks among hedge funds (click on for Q3 rankings and see the video for a fast take a look at the highest 5 shares). The extent and the change in hedge fund reputation aren’t the one variables it is advisable analyze to decipher hedge funds’ views. A inventory might witness a lift in reputation however it could nonetheless be much less fashionable than equally priced shares. That is why on the finish of this text we are going to study corporations resembling Exterran Company (NYSE:EXTN), Synchronoss Applied sciences, Inc. (NASDAQ:SNCR), and Shore Bancshares, Inc. (NASDAQ:SHBI) to assemble extra knowledge factors. Video: Watch our video concerning the high 5 hottest hedge fund shares.
Why will we pay any consideration in any respect to hedge fund sentiment? Our analysis has proven {that a} choose group of hedge fund holdings outperformed the S&P 500 ETFs by 66 share factors since March 2017 (see the details here). We have been additionally capable of establish prematurely a choose group of hedge fund holdings that’ll considerably underperform the market. We’ve been monitoring and sharing the record of those shares since February 2017 they usually misplaced 13% by way of November seventeenth. That is why we consider hedge fund sentiment is a particularly helpful indicator that buyers ought to take note of.
Matthew Lindenbaum of Basswood Capital
At Insider Monkey we scour a number of sources to uncover the following nice funding thought. For instance, Federal Reserve has been creating trillions of {dollars} electronically to maintain the rates of interest close to zero. We consider this may result in inflation and enhance actual property costs. So, we really useful this real estate stock to our month-to-month premium e-newsletter subscribers. We undergo lists like the ten most profitable companies on the earth to select the perfect large-cap shares to purchase. Though we advocate positions in solely a tiny fraction of the businesses we analyze, we take a look at as many shares as we will. We learn hedge fund investor letters and hearken to inventory pitches at hedge fund conferences. You may subscribe to our free each day e-newsletter on our website. With all of this in thoughts let’s take a gander on the key hedge fund motion relating to Chemung Monetary Corp. (NASDAQ:CHMG).
What does sensible cash take into consideration Chemung Monetary Corp. (NASDAQ:CHMG)?
On the finish of September, a complete of three of the hedge funds tracked by Insider Monkey have been bullish on this inventory, a change of 0% from the second quarter of 2020. However, there have been a complete of three hedge funds with a bullish place in CHMG a 12 months in the past. So, let’s take a look at which hedge funds have been among the many high holders of the inventory and which hedge funds have been making large strikes.
The most important stake in Chemung Monetary Corp. (NASDAQ:CHMG) was held by Basswood Capital, which reported holding $4.4 million price of inventory on the finish of September. It was adopted by Renaissance Applied sciences with a $2.1 million place. The one different hedge fund that’s bullish on the corporate was Royce & Associates.
Earlier we advised you that the combination hedge fund curiosity within the inventory was unchanged and we view this as a damaging improvement. Though there weren’t any hedge funds dumping their holdings in the course of the third quarter, there weren’t any hedge funds initiating model new positions. This means that hedge funds, at the easiest, understand this inventory as useless cash they usually have not recognized any viable catalysts that may appeal to investor consideration.
Let’s now check out hedge fund exercise in different shares – not essentially in the identical trade as Chemung Monetary Corp. (NASDAQ:CHMG) however equally valued. We’ll check out Exterran Company (NYSE:EXTN), Synchronoss Applied sciences, Inc. (NASDAQ:SNCR), Shore Bancshares, Inc. (NASDAQ:SHBI), Surgalign Holdings, Inc. (NASDAQ:SRGA), Strongbridge Biopharma plc (NASDAQ:SBBP), Tanzanian Gold Company (NYSE:TRX), and Fonar Company (NASDAQ:FONR). This group of shares’ market valuations match CHMG’s market valuation.
[table] Ticker, No of HFs with positions, Whole Worth of HF Positions (x1000), Change in HF Place EXTN,11,7114,-3 SNCR,10,6587,0 SHBI,5,19132,-1 SRGA,13,10994,2 SBBP,13,32202,3 TRX,2,189,0 FONR,4,10926,-2 Common,8.3,12449,-0.1 [/table]
View table here in the event you expertise formatting points.
As you possibly can see these shares had a mean of 8.3 hedge funds with bullish positions and the common quantity invested in these shares was $12 million. That determine was $7 million in CHMG’s case. Surgalign Holdings, Inc. (NASDAQ:SRGA) is the preferred inventory on this desk. However Tanzanian Gold Company (NYSE:TRX) is the least fashionable one with solely 2 bullish hedge fund positions. Chemung Monetary Corp. (NASDAQ:CHMG) shouldn’t be the least fashionable inventory on this group however hedge fund curiosity continues to be under common. Our total hedge fund sentiment rating for CHMG is 27.5. Shares with larger variety of hedge fund positions relative to different shares in addition to relative to their historic vary obtain the next sentiment rating. Our calculations confirmed that top 20 most popular stocks amongst hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 share factors. These shares gained 28.1% in 2020 by way of November twenty third and nonetheless beat the market by 15.4 share factors. A small variety of hedge funds have been additionally proper about betting on CHMG because the inventory returned 17.7% for the reason that finish of the third quarter (by way of 11/23) and outperformed the market by an excellent bigger margin.
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Disclosure: None. This text was initially printed at Insider Monkey.
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