Is Performance Shipping Inc. (PSHG) a good stock to buy now?
In this article, we’ll see if hedge funds think of Performance Shipping Inc. (NASDAQ:PSHG) is a good investment right now. We check the sentiment of hedge funds and billionaire investors before diving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get advice from investment bankers and industry insiders. Sure, they sometimes fail miserably, but their consensual stock picks have historically outperformed the market after adjusting for known risk factors.
Is PSHG a good stock to buy? Performance Shipping Inc. (NASDAQ:PSHG) shareholders have seen an increase in hedge fund sentiment lately. Performance Shipping Inc. (NASDAQ:PSHG) was in the portfolios of 3 hedge funds at the end of the first quarter of 2021. The all-time high for this statistic was previously 2. This means that the bullish number of hedge fund positions in this stock is currently at its highest level. Our calculations also showed that PSHG is not one of the 30 most popular stocks among hedge funds (click for Q1 ranking).
The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Hedge funds have over $ 3.5 trillion in assets under management, so you can’t expect all of their portfolios to beat the market with significant margins. Our research identified in advance a select group of hedge funds that have outperformed S&P 500 ETFs by more than 115 percentage points since March 2017 (see details here). So you can still find a lot of gems by following the movements of hedge funds today.
David Siegel of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, an activist hedge fund wants to buy this $ 28 biotech share for $ 50. We therefore recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best stocks of batteries to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to market arguments at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. With that in mind, we’re going to review the key hedge fund action regarding Performance Shipping Inc. (NASDAQ:PSHG).
Do hedge funds think PSHG is a good stock to buy now?
At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 200% from the previous quarter. Below you can see how hedge fund sentiment towards PSHG has developed over the past 23 quarters. With the capital of hedge funds changing hands, there is a select group of outstanding hedge fund managers who were significantly increasing their holdings (or already accumulating large positions).
More precisely, Renaissance technologies was the largest shareholder of Performance Shipping Inc. (NASDAQ: PSHG), with a stake worth $ 0.6 million reported in late March. Lagging behind Renaissance Technologies was Two Sigma Advisors, which raised a stake valued at $ 0.4 million. Citadel Investment Group was also very attached to the stock, becoming one of the largest hedge fund holders in the company. In terms of portfolio weights assigned to each position Two Sigma advisors assigned the greatest weight to Performance Shipping Inc. (NASDAQ: PSHG), around 0.0011% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, distributing 0.0007% of its 13F equity portfolio to PSHG.
As one might reasonably expect, specific fund managers led the herd of bulls. Two Sigma advisers, led by John Overdeck and David Siegel, have assembled the most important position in Performance Shipping Inc. (NASDAQ: PSHG). Two Sigma advisors had invested $ 0.4 million in the company at the end of the quarter. Ken Griffin’s Citadelle investment group also initiated a position of $ 0.1 million during the quarter.
Let’s also take a look at hedge fund activity in other stocks – not necessarily in the same industry as Performance Shipping Inc. (NASDAQ: PSHG) but of similar value. We’ll take a look at Tenax Therapeutics Inc (NASDAQ:TENX), Unico American Corporation (NASDAQ:UNAM), Summer Infant, Inc. (NASDAQ:SUMR), AmpliTech Group, Inc. (NASDAQ:AMPG), Reliance Global Group, Inc. (NASDAQ:RELI), Carver Bancorp, Inc. (NASDAQ:CARV) and GeoVax Labs, Inc. (NASDAQ:GOVX). All the market caps of these stocks are similar to the market cap of PSHG.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position TENX, 3.5289, -1 UNAM, 1.126.0 SUMR, 3.12015.0 AMPG, 2.1591.2 RELI, 2,529.2 CARV, 2,317.2 GOVX, 1,330, -2 Medium, 2,2885, 0.4 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 2 hedge funds with bullish positions and the average amount invested in these stocks was $ 3 million. That figure was $ 1 million in the case of PSHG. Tenax Therapeutics Inc (NASDAQ:TENX) is the most popular action in this table. On the other hand, Unico American Corporation (NASDAQ:UNAM) is the least popular with only 1 bullish hedge fund positions. Performance Shipping Inc. (NASDAQ: PSHG) is not the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for the PSHG is 87. 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 positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations have shown 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 gained 17.2% in 2021 through June 11 and again beat the market by 3.3 percentage points. Unfortunately, PSHG was not as popular as these 5 stocks and the hedge funds that bet on PSHG were disappointed as the stock has returned -3.8% since the end of March (through 6/11) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Monkey initiate.