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We are still in an overall bull market and many stocks that smart money investors were piling into surged through October 17th. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 45% and 39% respectively. Hedge funds' top 3 stock picks returned 34.4% this year and beat the S&P 500 ETFs by 13 percentage points. Investing in index funds guarantees you average returns, not superior returns. We are looking to generate superior returns for our readers. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Frontline Ltd (NYSE:FRO).
Is Frontline Ltd (NYSE:FRO) a buy here? Hedge funds are buying. The number of bullish hedge fund bets rose by 3 lately. Our calculations also showed that FRO isn't among the 30 most popular stocks among hedge funds (see the video below).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of methods stock traders use to size up publicly traded companies. A duo of the most under-the-radar methods are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the elite fund managers can outperform the market by a superb amount (see the details here).
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We're going to take a peek at the key hedge fund action encompassing Frontline Ltd (NYSE:FRO).
Hedge fund activity in Frontline Ltd (NYSE:FRO)
At Q2's end, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 30% from the first quarter of 2019. By comparison, 6 hedge funds held shares or bullish call options in FRO a year ago. With hedgies' capital changing hands, there exists an "upper tier" of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Crispin Odey's Odey Asset Management Group has the largest position in Frontline Ltd (NYSE:FRO), worth close to $30.3 million, corresponding to 2.6% of its total 13F portfolio. On Odey Asset Management Group's heels is Renaissance Technologies, which holds a $15 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors with similar optimism contain Israel Englander's Millennium Management, Ken Griffin's Citadel Investment Group and D. E. Shaw's D E Shaw.