Out of thousands of stocks that are currently traded on the market, itisdifficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs,who areindustry experts and well connected to other industry and mediainsiders on top of that. Individual investors can piggyback the hedge funds employing these talents andcanbenefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 750 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, lets take a closer look at what smart money thinks aboutNational Storage Affiliates Trust (NYSE:NSA).
National Storage Affiliates Trust (NYSE:NSA) investors should pay attention to a decrease in hedge fund interest recently. NSA was in 15 hedge funds' portfolios at the end of September. There were 18 hedge funds in our database with NSA holdings at the end of the previous quarter. Our calculations also showed that NSA isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the Russell 2000 ETFs by 40 percentage points since May 2014 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 27.8% through November 21, 2019. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Jim Simons of Renaissance TechnologiesStory continues
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world's largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, "I'm investing more today than I did back in early 2009." So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds' buy/sell signals. Let's analyze the key hedge fund action surrounding National Storage Affiliates Trust (NYSE:NSA).
At Q3's end, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of -17% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in NSA over the last 17 quarters. With hedgies' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).
The largest stake in National Storage Affiliates Trust (NYSE:NSA) was held by Renaissance Technologies, which reported holding $62 million worth of stock at the end of September. It was followed by Millennium Management with a $31.9 million position. Other investors bullish on the company included Winton Capital Management, Citadel Investment Group, and D E Shaw. In terms of the portfolio weights assigned to each position Navellier & Associates allocated the biggest weight to National Storage Affiliates Trust (NYSE:NSA), around 0.2% of its 13F portfolio. Winton Capital Management is also relatively very bullish on the stock, dishing out 0.19 percent of its 13F equity portfolio to NSA.
Due to the fact that National Storage Affiliates Trust (NYSE:NSA) has faced a decline in interest from the entirety of the hedge funds we track, we can see that there is a sect of fund managers who sold off their positions entirely last quarter. At the top of the heap, Jonathan Barrett and Paul Segal's Luminus Management cut the biggest position of the 750 funds monitored by Insider Monkey, valued at close to $9.7 million in stock. Dmitry Balyasny's fund, Balyasny Asset Management, also dumped its stock, about $4.8 million worth. These moves are important to note, as total hedge fund interest fell by 3 funds last quarter.
Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as National Storage Affiliates Trust (NYSE:NSA) but similarly valued. We will take a look at NovaGold Resources Inc. (NYSEAMEX:NG), Euronav NV (NYSE:EURN), Cannae Holdings, Inc. (NYSE:CNNE), and Federal Signal Corporation (NYSE:FSS). This group of stocks' market values resemble NSA's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NG,16,211750,6 EURN,18,138289,2 CNNE,19,241748,0 FSS,19,77508,-1 Average,18,167324,1.75 [/table]
View table hereif you experience formatting issues.
As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $167 million. That figure was $138 million in NSA's case. Cannae Holdings, Inc. (NYSE:CNNE) is the most popular stock in this table. On the other hand NovaGold Resources Inc. (NYSEAMEX:NG) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks National Storage Affiliates Trust (NYSE:NSA) is even less popular than NG. Hedge funds dodged a bullet by taking a bearish stance towards NSA. Our calculations showed that the top 20 most popular hedge fund stocks returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately NSA wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); NSA investors were disappointed as the stock returned 0.4% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 70 percent of these stocks already outperformed the market so far in Q4.
Disclosure: None. This article was originally published at Insider Monkey.
Related Content
More:
Here is What Hedge Funds Think About National Storage Affiliates Trust (NSA) - Yahoo Finance
- WikiLeaks' Julian Assange: NSA critics got lucky because agency had no PR strategy - April 26th, 2014 [April 26th, 2014]
- National Speakers Association New Jersey Chapter NSA - April 26th, 2014 [April 26th, 2014]
- National Security Agency - Wikipedia, the free encyclopedia - April 26th, 2014 [April 26th, 2014]
- NSA - Satu Hari Di Bulan Juni (TULUS) (COVER) - Video - April 26th, 2014 [April 26th, 2014]
- Hong Kong: Protesters blow whistles for NSA whistle blower - Video - April 26th, 2014 [April 26th, 2014]
- An Inside Look at the NSA With Whistleblower William Binney (Part 2 of 2) - Video - April 26th, 2014 [April 26th, 2014]
- UK: China will offer fig leaves to US exposed by NSA leaker - Assange - Video - April 26th, 2014 [April 26th, 2014]
- NSA ~ (Autodidactism) Whistleblowing - Video - April 27th, 2014 [April 27th, 2014]
- Dropping #NSA Knowledge Like a Clumsy Librarian - Video - April 27th, 2014 [April 27th, 2014]
- Full Show: Disband The NSA or; Corruption in the Capitol FO SHIZZLE {aTV002} - Video - April 27th, 2014 [April 27th, 2014]
- NSA DOCUMENTARY SIX YEARS BEFORE SNOWDEN - Video - April 27th, 2014 [April 27th, 2014]
- ShmooCon 2014: The NSA: Capabilities and Countermeasures - Video - April 27th, 2014 [April 27th, 2014]
- NSA Knew Of Heartbleed Bug, Refused To Protect Americans - Video - April 27th, 2014 [April 27th, 2014]
- Former NSA Head To Become Columnist For Conservative Paper To Discuss Intelligence - Video - April 27th, 2014 [April 27th, 2014]
- An Inside Look at the NSA With Whistleblower William Binney (Part 1 of 2) - Video - April 27th, 2014 [April 27th, 2014]
- Keynote Address by Shri Shivshankar Menon, NSA at International Seminar on Kautilya - Video - April 27th, 2014 [April 27th, 2014]
- NSA Wiretapping: A 4th Amendment Violation?: Blake Norvell at TEDxSMU - Video - April 27th, 2014 [April 27th, 2014]
- Hang with Rand: Email Privacy, NSA Spying, and Defending Our Civil Liberties - Video - April 27th, 2014 [April 27th, 2014]
- NSA Surveillance and What To Do About It - Bruce Schneier - Video - April 27th, 2014 [April 27th, 2014]
- READER SUBMITTED: NSA CT April 2014 Meeting - April 28th, 2014 [April 28th, 2014]
- MVI 1847 Obama's NSA Denies FOIA About MH 370! - Video - April 28th, 2014 [April 28th, 2014]
- George Galloway's Sputnik: Ewen MacAskill on Guardian / Edward Snowden NSA leaks (26Apr14) - Video - April 28th, 2014 [April 28th, 2014]
- CIA & NSA DIRECTED ENERGY WEAPON ATTACK ON WHISTLE BLOWER - Video - April 28th, 2014 [April 28th, 2014]
- Book TV - 2014 San Antonio Book Festival: Panel on the NSA, Big Brother, and Democracy - Video - April 28th, 2014 [April 28th, 2014]
- NSA Throwdown: John Oliver v. 60 Minutes - April 29th, 2014 [April 29th, 2014]
- NSA will sit on security vulnerabilities because of terrorism - April 29th, 2014 [April 29th, 2014]
- New water records show NSA Utah Data Center likely behind schedule - April 29th, 2014 [April 29th, 2014]
- MVI 1871 NSA Might Be OnTo Me! - Video - April 29th, 2014 [April 29th, 2014]
- ZyXEL NSA 325 v2 Hands On - Deutsch / German notebooksbilliger.de - Video - April 29th, 2014 [April 29th, 2014]
- German opposition says US should destroy Merkel's NSA file - Video - April 29th, 2014 [April 29th, 2014]
- Germany: NSA spying "unacceptable" says SPD - Video - April 29th, 2014 [April 29th, 2014]
- NSA Surveillance 2 - Video - April 29th, 2014 [April 29th, 2014]
- NSA Surveillance Panel 1 - Video - April 29th, 2014 [April 29th, 2014]
- Chalk Talk How Snowden Breached NSA Security - Video - April 29th, 2014 [April 29th, 2014]
- NSA reveals some cyber security flaws are left secret - April 30th, 2014 [April 30th, 2014]
- NSA data center uses less water than expected - April 30th, 2014 [April 30th, 2014]
- April 2014 Breaking News Do you use Google or Yahoo? NSA Intercepts Google And Yahoo Traffic - Video - April 30th, 2014 [April 30th, 2014]
- Supreme Court could weigh in on NSA case, justice says - May 1st, 2014 [May 1st, 2014]
- New NSA chief: Agency has lost trust - May 1st, 2014 [May 1st, 2014]
- NSA on Heartbleed: 'We're not legally allowed to lie to you' - May 1st, 2014 [May 1st, 2014]
- What's The NSA Doing Now? Training More Cyberwarriors - May 1st, 2014 [May 1st, 2014]
- Anonymous NSA - Video - May 1st, 2014 [May 1st, 2014]
- Cutting off H2O to the NSA - Video - May 1st, 2014 [May 1st, 2014]
- Brazil: Greenwald slams US media, shares tips to avoid NSA - Video - May 1st, 2014 [May 1st, 2014]
- NSA IS TRYINGG 2 KILL ME FAMS - Video - May 1st, 2014 [May 1st, 2014]
- What was more popular on Twitter, NSA, NRA or NBA..today? - Video - May 1st, 2014 [May 1st, 2014]
- CIS111: NSA Uncovered - Video - May 1st, 2014 [May 1st, 2014]
- Views from the Street on NSA Activities and Liberty (6/6) - Video - May 1st, 2014 [May 1st, 2014]
- Views from the Street on NSA Activities and Liberty (4/6) - Video - May 1st, 2014 [May 1st, 2014]
- Views from the Street on NSA Activities and Liberty (3/6) - Video - May 1st, 2014 [May 1st, 2014]
- Views from the Street on NSA Activities and Liberty (2/6) - Video - May 1st, 2014 [May 1st, 2014]
- Views from the Street on NSA Activities and Liberty (1/6) - Video - May 1st, 2014 [May 1st, 2014]
- Germany: NSA may have accidentally outed secret base - Video - May 1st, 2014 [May 1st, 2014]
- ZyXEL NSA 325 v2 Installations-Wizard - Deutsch / German notebooksbilliger.de - Video - May 1st, 2014 [May 1st, 2014]
- Tech firms to increase alerts about police requests for data -- report - May 2nd, 2014 [May 2nd, 2014]
- German Chancellor Angela Merkel visits US, after the NSA eavesdropping scandal - Video - May 2nd, 2014 [May 2nd, 2014]
- NSA spies on more US citizens than Russians Snowden - May 3rd, 2014 [May 3rd, 2014]
- THE NEXT NSA?Police under scrutiny for using spying technology - May 3rd, 2014 [May 3rd, 2014]
- Ukraine and NSA will test Merkel - Video - May 3rd, 2014 [May 3rd, 2014]
- The Latest Attacks On NSA Whistleblower Edward Snowden - Kevin Gosztola Discusses - Video - May 3rd, 2014 [May 3rd, 2014]
- Still Report #246 - NSA Classifies MH370 Material - Video - May 4th, 2014 [May 4th, 2014]
- Code Talker Induction into NSA Hall of Honor - Video - May 4th, 2014 [May 4th, 2014]
- NSA ( National Security Agency ) refusal to release documents on UFO's - Video - May 4th, 2014 [May 4th, 2014]
- Obama & NSA Refuse FOIA Request on Malaysia Flight deemed classified - Video - May 4th, 2014 [May 4th, 2014]
- Kafkawinstons World`s Channel Terminated NSA is replacing Channel`s with Sockpuppet Channel`s - Video - May 4th, 2014 [May 4th, 2014]
- NSA Volunteer Justin Hall at the NSA Comedy Tour February 2014 - Video - May 4th, 2014 [May 4th, 2014]
- Barack Obama on NSA Surveillance I'd Be Concerned Too If I Wasn't in Government - Video - May 4th, 2014 [May 4th, 2014]
- GBPPR Vision #26: Overview of the NSA's TAWDRYYARD Radar Retro-Reflector - Video - May 4th, 2014 [May 4th, 2014]
- NSA proof phone Case - Video - May 5th, 2014 [May 5th, 2014]
- 2014 NSA 2014 Million Dollar Publisher's Lab - Video - May 5th, 2014 [May 5th, 2014]
- Gen. Michael Hayden - the Former Director of NSA and the CIA - Video - May 5th, 2014 [May 5th, 2014]
- REVEALED: Here's The Solution To That Encoded NSA Puzzle Tweet - May 5th, 2014 [May 5th, 2014]
- Michael Hayden's Unwitting Case Against Secret Surveillance - May 5th, 2014 [May 5th, 2014]
- NSA's Encrypted Tweet: We're Hiring Code Breakers - May 5th, 2014 [May 5th, 2014]
- Russ Tice: Life as a NSA Whistleblower - Video - May 5th, 2014 [May 5th, 2014]
- What Is Going on at NSA These Days - Video - May 5th, 2014 [May 5th, 2014]
- What is the Role of the NSA? AFF Dallas Debates - Video - May 5th, 2014 [May 5th, 2014]
- Edward Snowden said CIA , and NSA had 52. 6 Billion for black budget - Video - May 5th, 2014 [May 5th, 2014]
- NSA looks to appeal to young cryptographers through coded ads - May 6th, 2014 [May 6th, 2014]
- Code Cracked: Mysterious NSA Tweet Is Decrypted in Seconds - May 6th, 2014 [May 6th, 2014]