Published on 26 May 2021 on Insider Monkey via Yahoo Finance

Here is What Hedge Funds Think About Abraxas Petroleum Corp. (AXAS)

In this article we will take a look at whether hedge funds think Abraxas Petroleum Corp. (NASDAQ:AXAS) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.

Abraxas Petroleum Corp. (NASDAQ:AXAS) was in 3 hedge funds' portfolios at the end of March. The all time high for this statistic is 15. AXAS shareholders have witnessed a decrease in support from the world's most elite money managers recently. There were 4 hedge funds in our database with AXAS positions at the end of the fourth quarter. Our calculations also showed that AXAS isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

So, why do we pay attention to hedge fund sentiment before making any investment decisions? Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). We have been able to outperform the passive index funds by tracking the moves of corporate insiders and hedge funds, and we believe small investors can benefit a lot from reading hedge fund investor letters and 13F filings.