We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) based on that data.
PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) investors should pay attention to an increase in hedge fund interest in recent months. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) was in 21 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 21. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that PMVP isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind let’s take a peek at the latest hedge fund action regarding PMV Pharmaceuticals, Inc. (NASDAQ:PMVP).
Peter Kolchinsky of RA Capital Management
Do Hedge Funds Think PMVP Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 17% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in PMVP over the last 25 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
Among these funds, OrbiMed Advisors held the most valuable stake in PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), which was worth $218.4 million at the end of the third quarter. On the second spot was Avoro Capital Advisors (venBio Select Advisor) which amassed $87.2 million worth of shares. Euclidean Capital, Viking Global, and RA Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Euclidean Capital allocated the biggest weight to PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), around 40.12% of its 13F portfolio. Logos Capital is also relatively very bullish on the stock, setting aside 3.01 percent of its 13F equity portfolio to PMVP.
As aggregate interest increased, key money managers were breaking ground themselves. Driehaus Capital, managed by Richard Driehaus, initiated the largest position in PMV Pharmaceuticals, Inc. (NASDAQ:PMVP). Driehaus Capital had $1 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is Peter Muller’s PDT Partners.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) but similarly valued. We will take a look at Itau CorpBanca (NYSE:ITCB), Zymergen Inc. (NASDAQ:ZY), Couchbase Inc. (NASDAQ:BASE), Zymeworks Inc. (NYSE:ZYME), The Shyft Group, Inc. (NASDAQ:SHYF), Harsco Corporation (NYSE:HSC), and Gevo, Inc. (NASDAQ:GEVO). This group of stocks’ market valuations are similar to PMVP’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ITCB | 1 | 1060 | -1 |
| ZY | 9 | 96585 | 9 |
| BASE | 13 | 106945 | 13 |
| ZYME | 24 | 377238 | 5 |
| SHYF | 14 | 106750 | 3 |
| HSC | 11 | 44378 | 0 |
| GEVO | 7 | 28618 | -1 |
| Average | 11.3 | 108796 | 4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.3 hedge funds with bullish positions and the average amount invested in these stocks was $109 million. That figure was $649 million in PMVP’s case. Zymeworks Inc. (NYSE:ZYME) is the most popular stock in this table. On the other hand Itau CorpBanca (NYSE:ITCB) is the least popular one with only 1 bullish hedge fund positions. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PMVP is 81.5. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately PMVP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PMVP were disappointed as the stock returned -22.5% since the end of September (through 12/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
