Published on 19 Jun 2021 on Insider Monkey via Yahoo Finance

Where Do Hedge Funds Stand On HEXO Corp. (HEXO)?

In this article you are going to find out whether hedge funds think HEXO Corp. (NYSE:HEXO) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.

Is HEXO Corp. (NYSE:HEXO) a buy here? Money managers were becoming more confident. The number of long hedge fund bets inched up by 2 lately. HEXO Corp. (NYSE:HEXO) was in 6 hedge funds' portfolios at the end of March. The all time high for this statistic is 10. Our calculations also showed that HEXO isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 4 hedge funds in our database with HEXO positions at the end of the fourth quarter.

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.