In the current landscape of global equity markets, increasing volatility and uncertainty has made it increasingly harder to find and select stocks for the portfolio with great conviction.

The key to a successful pick often lies in identifying the moves of the savviest players in the game, usually from hedge funds. These nimble and resourceful entities have a reputation for being at the forefront of market trends, making their trades worth watching for individual investors seeking valuable investment ideas.

Hedge funds are not your run-of-the-mill investors. With their substantial resources, extensive research capabilities, and access to exclusive market intelligence, they hold a unique vantage point from which they can identify opportunities before they become common knowledge. Their trades are a glimpse into the minds of some of the brightest financial minds, and astute investors would be wise to pay attention.

Hidden Gems

The beauty of monitoring hedge fund trades lies in the potential to unearth hidden gems that have yet to be discovered by the wider market. When a hedge fund takes a sizable position in a particular stock, it is often a signal of their conviction in the company's prospects.

These funds have the luxury of conducting in-depth due diligence, analyzing financial statements, meeting with management teams, and investigating industry trends to gauge the true value of a company. When they invest, they are placing a bet on their carefully researched thesis, and the potential rewards can be significant.

The stocks mentioned in the article today have been selected from Fintel’s Quant Fund Sentiment Score that have been ranked to find securities with the most buying activity. The leaderboard does the heavy lifting for investors to unveil which trades are popular among the investment community.

Today’s list features equities from markets in the U.S., U.K., South Korea, India, China, Japan and South Africa.

The Fintel model is a proprietary, multi-factor model that include a measure of the increase in the number of disclosed owners and the changes in average allocation across disclosed owners.

Globalfoundries (US:GFS)

The first stock featured on our list today is multinational semiconductor stock Globalfoundries (US:GFS), with a fund sentiment score of 99.44. The number of institutions on the register has rocketed to 565 from 508 during the past 90 days with a spike in average portfolio allocation to 0.28%.

Hyundai Development Co-Engineering & Construction (KR:294870)

Korean equity Hyundai Development Co-Engineering & Construction (KR:294870) features ninth on our list this month with a fund sentiment score of 99.47. The number of funds and institutions on the register declined to 455 from 469 during the quarter, however this was offset by a strong rise in the average portfolio allocation to 0.37% for holders.

Can Fin Homes (IN:511196)

Indian house finance company, Can Fin Homes  (IN:511196), makes our top 10 list with a score of 99.55, driven by a 1,788% growth in average portfolio allocation to 0.48%. The number of institutional owners also increase during the quarter to 417 from 408. 

AJ Networks (KR:095570)

Another Korean name, AJ Networks (KR:095570), operating in the technology industry, caught the attention of some hedge funds during the quarter with the number of owners growing to 46 from 39 in the last 90 days. The stock has a high fund sentiment score of 99.55 with its owners allocating an average of 0.4655% to the company.

BigBear.ai Holdings (US:BBAI)

An emerging player in the technology sector, BigBear.ai Holdings (US:BBAI) has seen a 136% increase in the number of institutional owners of the float to 52 firms. The average fund's allocation now stands at 0.53% and has contributed to a sentiment score of 99.56 for the company.

China Longyuan Power (CN:001289)

Asian wind power producer China Longyuan Power (CN:001289) features at number five on our list with a fund sentiment score of 99.64. While the number of institutional owners has actually declined to 187 from 203 during the quarter, a 30-fold rise in portfolio allocation to 0.50% pushes the stock higher up the quantitative list.

GPO FIN Banorte (MX:GFNORTEO)

Mexican commercial bank GPO FIN Banorte (MX:GFNORTEO) ranks fourth on the list with a score of 99.68.  The number of institutions on the register during the quarter rose from 335 to 351 with a sharp rise in average portfolio allocation to 0.89%.

Allied Electronics Corp (ZA:AEL)

Third on our list, with a sentiment score of 99.79, shares of South Africa's Allied Electronics (ZA:AEL) have seen a surge in portfolio allocation. While the number of owners on the register has only risen by four to 357, the average portfolio allocation has increased significantly to 0.56% on average.

Chilled & Frozen Logistics (JP:9099)

At number two, Japanese stock Chilled & Frozen Logistics’ (JP:9099) saw institutional ownership grow from 597 to 621 during the quarter. The funds have allocated a portfolio average of 1.0264% to the stock. The rapid growth in allocation of the stock has driven a high sentiment score of 99.81.

Shell (US:RYDAF)

At the top of the leaderboard, global energy conglomerate Shell (US:RYDAF) sports a fund sentiment score of 99.84. The number of institutions on the register has grown to 821 from 806 in the most recent quarter with a significant rise in portfolio allocation to 1.38% from a level below 0.10%. The continued growth from an already-strong standing indicates investors' confidence in Shell's future prospects and directional change to become a future facing more sustainable energy provider as the century progresses.