On this article we are going to analyze whether or not Bankwell Monetary Group, Inc. (NASDAQ:BWFG) is an effective funding proper now by following the lead of among the greatest traders on the earth and piggybacking their concepts. There is no higher approach to get these corporations’ immense assets and analytical capabilities working for us than to comply with their lead into their greatest concepts. Whereas not all of those picks will likely be winners, our analysis exhibits that these picks traditionally outperformed the market by double digits yearly.
Is Bankwell Monetary Group, Inc. (NASDAQ:BWFG) price your consideration proper now? One of the best inventory pickers had been getting much less bullish. The variety of lengthy hedge fund positions had been reduce by 1 these days. Bankwell Monetary Group, Inc. (NASDAQ:BWFG) was in 4 hedge funds’ portfolios on the finish of March. The all time excessive for this statistic is 6. Our calculations additionally confirmed that BWFG is not among the many 30 most popular stocks among hedge funds (click on for Q1 rankings). There have been 5 hedge funds in our database with BWFG positions on the finish of the fourth quarter.
Within the monetary world there are numerous metrics shareholders can use to research publicly traded corporations. Two of essentially the most under-the-radar metrics are hedge fund and insider buying and selling sentiment. We’ve got proven that, traditionally, those that comply with the highest picks of one of the best hedge fund managers can beat the market by a strong margin (see the details here). Additionally, our month-to-month publication’s portfolio of lengthy inventory picks returned 206.8% since March 2017 (by means of Could 2021) and beat the S&P 500 Index by greater than 115 proportion factors. You possibly can obtain a pattern challenge of this text on our website .
John Zaro of Bourgeon Capital
At Insider Monkey, we scour a number of sources to uncover the subsequent nice funding concept. For instance, an activist hedge fund desires to purchase this $27 biotech stock for $50. So, we really helpful an extended place to our month-to-month premium publication subscribers. We undergo lists like the ten best battery stocks to choose the subsequent Tesla that may ship a 10x return. Despite the fact that we suggest positions in solely a tiny fraction of the businesses we analyze, we try as many shares as we will. We learn hedge fund investor letters and take heed to inventory pitches at hedge fund conferences. You possibly can subscribe to our free every day publication on our homepage. With all of this in thoughts let’s take a look on the newest hedge fund motion surrounding Bankwell Monetary Group, Inc. (NASDAQ:BWFG).
Do Hedge Funds Assume BWFG Is A Good Inventory To Purchase Now?
On the finish of March, a complete of 4 of the hedge funds tracked by Insider Monkey had been lengthy this inventory, a change of -20% from the fourth quarter of 2020. Under, you possibly can try the change in hedge fund sentiment in the direction of BWFG during the last 23 quarters. So, let’s have a look at which hedge funds had been among the many prime holders of the inventory and which hedge funds had been making huge strikes.
Of the funds tracked by Insider Monkey, Robert I. Usdan and Wayne Okay. Goldstein’s Endicott Management has the largest place in Bankwell Monetary Group, Inc. (NASDAQ:BWFG), price near $17.1 million, amounting to 4.7% of its whole 13F portfolio. The second most bullish fund is Renaissance Applied sciences, with a $5.8 million place; lower than 0.1%% of its 13F portfolio is allotted to the inventory. Another members of the sensible cash that maintain lengthy positions embrace Frederick Tucker Golden’s Solas Capital Administration, John Zaro’s Bourgeon Capital and . When it comes to the portfolio weights assigned to every place Endicott Administration allotted the largest weight to Bankwell Monetary Group, Inc. (NASDAQ:BWFG), round 4.65% of its 13F portfolio. Solas Capital Administration can be comparatively very bullish on the inventory, earmarking 2.89 p.c of its 13F fairness portfolio to BWFG.
We view hedge fund exercise within the inventory unfavorable, however on this case there was solely a single hedge fund promoting its complete place: Seidman Investment Partnership. One hedge fund promoting its complete place does not all the time indicate a bearish intent. Theoretically a hedge fund could determine to promote a promising place with the intention to make investments the proceeds in a extra promising concept. Nonetheless, we do not assume that is the case on this case as a result of not one of the 750+ hedge funds tracked by Insider Monkey recognized BWFG as a viable funding and initiated a place within the inventory.
Let’s now evaluate hedge fund exercise in different shares much like Bankwell Monetary Group, Inc. (NASDAQ:BWFG). We are going to check out Financial institution of Commerce Holdings (NASDAQ:BOCH), Investar Holding Company (NASDAQ:ISTR), TELA Bio, Inc. (NASDAQ:TELA), Kaixin Auto Holdings (NASDAQ:KXIN), First Enterprise Monetary Companies Inc (NASDAQ:FBIZ), Monroe Capital Corp (NASDAQ:MRCC), and Matinas Biopharma Holdings, Inc. (NYSE:MTNB). This group of shares’ market caps are much like BWFG’s market cap.
[table] Ticker, No of HFs with positions, Complete Worth of HF Positions (x1000), Change in HF Place BOCH,3,6001,-1 ISTR,5,20928,0 TELA,9,70631,1 KXIN,5,490,0 FBIZ,3,6057,1 MRCC,3,2470,-2 MTNB,8,1763,-1 Common,5.1,15477,-0.3 [/table]
View table here in the event you expertise formatting points.
As you possibly can see these shares had a mean of 5.1 hedge funds with bullish positions and the common quantity invested in these shares was $15 million. That determine was $27 million in BWFG’s case. TELA Bio, Inc. (NASDAQ:TELA) is the most well-liked inventory on this desk. Alternatively Financial institution of Commerce Holdings (NASDAQ:BOCH) is the least well-liked one with solely 3 bullish hedge fund positions. Bankwell Monetary Group, Inc. (NASDAQ:BWFG) is just not the least well-liked inventory on this group however hedge fund curiosity remains to be beneath common. Our total hedge fund sentiment rating for BWFG is 32.3. Shares with increased variety of hedge fund positions relative to different shares in addition to relative to their historic vary obtain the next sentiment rating. It is a barely damaging sign and we would somewhat spend our time researching shares that hedge funds are piling on. Our calculations confirmed that top 5 most popular stocks amongst hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 proportion factors. These shares gained 17.2% in 2021 by means of June eleventh and surpassed the market once more by 3.3 proportion factors. Sadly BWFG wasn’t practically as well-liked as these 5 shares (hedge fund sentiment was fairly bearish); BWFG traders had been disenchanted because the inventory returned 7% for the reason that finish of March (by means of 6/11) and underperformed the market. If you’re focused on investing in massive cap shares with large upside potential, you must try the top 5 most popular stocks amongst hedge funds as most of those shares already outperformed the market in 2021.
Get real-time e mail alerts: Observe Bankwell Monetary Group Inc. (NASDAQ:BWFG)
Disclosure: None. This text was initially revealed at Insider Monkey.
Associated Content material