Published on 29 Oct 2021 on Insider Monkey via Yahoo Finance
Should I Avoid Adtalem Global Education Inc. (ATGE)?
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of June 30th, 2021. What do these smart investors think about Adtalem Global Education Inc. (NYSE:ATGE)?
Adtalem Global Education Inc. (NYSE:ATGE) investors should be aware of a decrease in support from the world's most elite money managers lately. Adtalem Global Education Inc. (NYSE:ATGE) was in 19 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 26. There were 22 hedge funds in our database with ATGE holdings at the end of March. Our calculations also showed that ATGE isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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' 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 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.