As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds’ thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about TG Therapeutics Inc (NASDAQ:TGTX).
TG Therapeutics Inc (NASDAQ:TGTX) has seen a decrease in hedge fund sentiment in recent months. TG Therapeutics Inc (NASDAQ:TGTX) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 38. Our calculations also showed that TGTX isn’t among the 30 most popular stocks among hedge funds (click for Q3 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. Now let’s review the new hedge fund action encompassing TG Therapeutics Inc (NASDAQ:TGTX).
Do Hedge Funds Think TGTX Is A Good Stock To Buy Now?
At third quarter’s end, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -18% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards TGTX over the last 25 quarters. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
The largest stake in TG Therapeutics Inc (NASDAQ:TGTX) was held by RA Capital Management, which reported holding $136.4 million worth of stock at the end of September. It was followed by Alkeon Capital Management with a $135.4 million position. Other investors bullish on the company included Maverick Capital, Fisher Asset Management, and Lion Point. In terms of the portfolio weights assigned to each position Lion Point allocated the biggest weight to TG Therapeutics Inc (NASDAQ:TGTX), around 5.24% of its 13F portfolio. RA Capital Management is also relatively very bullish on the stock, setting aside 1.89 percent of its 13F equity portfolio to TGTX.
Since TG Therapeutics Inc (NASDAQ:TGTX) has faced declining sentiment from the smart money, logic holds that there were a few hedgies that elected to cut their full holdings heading into Q4. Interestingly, Farallon Capital said goodbye to the biggest investment of all the hedgies followed by Insider Monkey, worth about $19.4 million in stock, and Ken Greenberg and David Kim’s Ghost Tree Capital was right behind this move, as the fund dumped about $7 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 5 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as TG Therapeutics Inc (NASDAQ:TGTX) but similarly valued. These stocks are Gates Industrial Corporation plc (NYSE:GTES), Cirrus Logic, Inc. (NASDAQ:CRUS), Foot Locker, Inc. (NYSE:FL), Lazard Ltd (NYSE:LAZ), Ionis Pharmaceuticals, Inc. (NASDAQ:IONS), Cloudera, Inc. (NYSE:CLDR), and Fastly, Inc. (NYSE:FSLY). This group of stocks’ market valuations match TGTX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GTES | 29 | 202399 | 10 |
| CRUS | 25 | 324382 | -4 |
| FL | 30 | 1050571 | -1 |
| LAZ | 18 | 823375 | 0 |
| IONS | 24 | 527138 | 0 |
| CLDR | 29 | 1646043 | -5 |
| FSLY | 17 | 561820 | -7 |
| Average | 24.6 | 733675 | -1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.6 hedge funds with bullish positions and the average amount invested in these stocks was $734 million. That figure was $512 million in TGTX’s case. Foot Locker, Inc. (NYSE:FL) is the most popular stock in this table. On the other hand Fastly, Inc. (NYSE:FSLY) is the least popular one with only 17 bullish hedge fund positions. TG Therapeutics Inc (NASDAQ:TGTX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TGTX is 41.2. 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 negative signal and 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 31.1% in 2021 through December 9th and surpassed the market again by 5.1 percentage points. Unfortunately TGTX wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); TGTX investors were disappointed as the stock returned -49.8% since the end of September (through 12/9) 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 most of these stocks already outperformed the market in 2021.
Follow Tg Therapeutics Inc. (NASDAQ:TGTX)
Follow Tg Therapeutics Inc. (NASDAQ:TGTX)
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Disclosure: None. This article was originally published at Insider Monkey.
