Were hedge funds right about Blackstone Mortgage Trust Inc (BXMT)?



We at Insider Monkey reviewed over 866 13F documents that hedge funds and high-profile investors must file with the SEC. Documentation 13F shows the positions of funds and investors in the portfolio as of March 31st. In this article, we find out what these funds think of Blackstone Mortgage Trust Inc (NYSE:BXMT) based on these data.

Blackstone Mortgage Trust Inc (NYSE:BXMT) Shareholders have recently witnessed a decline in the activity of the world’s largest hedge funds. Blackstone Mortgage Trust Inc (NYSE:BXMT) was in 16 hedge fund portfolios at the end of Q1 2021. The maximum maximum for this statistic is 24. Our calculations also showed that BXMT is not included in the 30 most popular stocks among hedge funds (click to see first quarter rankings).

Why are we paying attention to hedge fund sentiment at all? Our research has shown that since March 2017, a select group of hedge fund holdings have outperformed the S&P 500 index funds by 115 percentage points (details here). This is why we believe that hedge fund sentiment is an extremely useful indicator that investors should look out for.

John Armitage Egerton Capital

John Armitage Egerton Capital

John Armitage of Egerton Capital

At Insider Monkey, we research multiple sources to find our next great investment idea. For example, the pet market is growing at 7% per year and is expected to reach $ 110 billion in 2021. So we check 5 best supplies for animal lovers… We go through lists like 15 Jim Cramer’s best stocks to determine the next Tesla that will bring oversized profits. While we only recommend positions in a small subset of the companies we analyze, we are checking as many stocks as possible. We read letters from hedge fund investors and listen to stock presentations at hedge fund conferences. You can subscribe to our free daily newsletter at our home page… With all of this in mind, let’s take a look at the key hedge fund actions against Blackstone Mortgage Trust Inc (NYSE:BXMT).

Do hedge funds think BXMT is a good stock to buy now?

At the end of the first quarter, 16 hedge funds tracked by Insider Monkey were long on the stock, up 6% from the previous quarter. Below you can see the change in hedge fund sentiment for BXMT over the last 23 quarters. So let’s take a look at which hedge funds were among the major stockholders and which hedge funds were making big strides.

According to public data on hedge fund holdings and institutional investors compiled by Insider Monkey, Egerton Capital Limited, owned by John Armitage, has the largest position at Blackstone Mortgage Trust Inc (NYSE: BXMT) at around $ 115 million, which is 0.6 % of its total portfolio 13F. … In second place is Citadel Investment Group, led by Ken Griffin, with a position of $ 35.1 million; less than 0.1 %% of the 13F portfolio has been invested in the fund’s shares. Among the remaining optimistic colleagues are Millennium Management of Israel of England and Lawrence Ryman. LDR Capital and Renaissance Technologies. In terms of portfolio weight assigned to each position, LDR Capital gave the most weight to Blackstone Mortgage Trust Inc (NYSE: BXMT), around 10.22% of its 13F portfolio. Amitell Capital is also relatively bullish on the stock, having set aside 1.6% of its 13F portfolio in favor of BXMT.

Given that Blackstone Mortgage Trust Inc (NYSE: BXMT) experienced bearish sentiment from the overall hedge fund industry, logic suggests that there were several hedge funds that sold their stakes entirely in the first quarter. It is worth noting that Franklin Parlamis Alternative investments Aequim the largest investment of all hedges tracked by Insider Monkey fell, totaling about $ 1.5 million in stocks, and Thomas Bailard’s Bailard Inc was right behind that move as the fund said goodbye to roughly $ 0.3 million. These moves are intriguing to say the least, as the overall percentage of hedge funds fell by 1 fund in the first quarter.

Now let’s take a look at other stocks like Blackstone Mortgage Trust Inc (NYSE: BXMT) hedge funds. We will review the National Fuel Gas Company (NYSE:NFG), Asana Inc. (NYSE:ASAN), ShockWave Medical, Inc. (NASDAQ:SWAV), Allison Transmission Holdings Inc (NYSE:ALSN), The Wendy’s Company (NASDAQ:WEN), B2Gold Corp (NYSE:BTG) and Zhihu Inc. (NYSE:ZH). The market cap of all of these stocks matches the market cap of BXMT.

[table] Ticker, number of HF positions with positions, total value of HF positions (x1000), change in HF position NFG, 16.92712.3 ASAN, 22.374549.4 SWAV, 17.219798, -5 ALSN, 30.498494, 5 WEN, 26.1018985, -5 BTG, 18.313091, -4 ZH, 23.94311.23 Average, 21.7.373134.3 [/table]

View table here if you have any formatting problems.

As you can see, there were an average of 21.7 bullish hedge funds in these stocks, and the average invested in these stocks was $ 373 million. In the case of BXMT, that figure was $ 210 million. Allison Transmission Holdings Inc (NYSE:ALSN) is the most popular stock in this table. On the other hand, the National Fuel Gas Company (NYSE:NFG) is the least popular with 16 bullish hedge fund positions. Compared to these stocks, Blackstone Mortgage Trust Inc (NYSE: BXMT) is even less popular than NFG. Our overall estimate of hedge fund sentiment for BXMT is 24. Stocks with more hedge fund positions relative to other stocks and relative to their historical range receive a higher sentiment score. Hedge funds dodged the bullet by taking a bearish stance on BXMT. Our calculations showed that the top 10 hedge fund stocks returned 95.8% in 2019 and 2020 and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks rose 28.5% in 2021 to July 23, but again managed to outperform the market by 10.1 percentage points. Unfortunately, BXMT was not as popular as these 5 stocks (hedge fund sentiment was very bearish); BXMT investors were disappointed as the stock gained 3.7% from the end of the first quarter (until July 23) and outperformed the market. If you are interested in investing in large-cap stocks with huge upside potential, you should read top 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market since 2019.

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Disclosure: None. This article originally appeared on Insider monkey


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