A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on TherapeuticsMD Inc (OTC:TXMD).
Hedge fund interest in TherapeuticsMD Inc (OTC:TXMD) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare TXMD to other stocks including Signet Jewelers Limited (NYSE:SIG), DHT Holdings Inc (NYSE:DHT), and Federal Agricultural Mortgage Corp. (NYSE:AGM) to get a better sense of its popularity.
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David E. Shaw of D.E. Shaw
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What does smart money think about TherapeuticsMD Inc (OTC:TXMD)?
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the second quarter of 2019. On the other hand, there were a total of 14 hedge funds with a bullish position in TXMD a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, David Rosen’s Rubric Capital Management has the number one position in TherapeuticsMD Inc (OTC:TXMD), worth close to $25 million, comprising 2.3% of its total 13F portfolio. The second largest stake is held by David E. Shaw of D E Shaw, with a $1.4 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers with similar optimism encompass Sculptor Capital, Ken Griffin’s Citadel Investment Group and David Cohen and Harold Levy’s Iridian Asset Management. In terms of the portfolio weights assigned to each position Rubric Capital Management allocated the biggest weight to TherapeuticsMD Inc (OTC:TXMD), around 2.29% of its 13F portfolio. Sculptor Capital is also relatively very bullish on the stock, dishing out 0.01 percent of its 13F equity portfolio to TXMD.
Judging by the fact that TherapeuticsMD Inc (OTC:TXMD) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedge funds that slashed their entire stakes by the end of the third quarter. Intriguingly, Clint Carlson’s Carlson Capital cut the largest stake of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $2 million in call options. Sculptor Capital, also cut its call options, about $0.3 million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks similar to TherapeuticsMD Inc (OTC:TXMD). We will take a look at Signet Jewelers Limited (NYSE:SIG), DHT Holdings Inc (NYSE:DHT), Federal Agricultural Mortgage Corp. (NYSE:AGM), and Solar Capital Ltd. (NASDAQ:SLRC). This group of stocks’ market caps resemble TXMD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SIG | 14 | 135975 | -3 |
| DHT | 23 | 128089 | 7 |
| AGM | 10 | 32857 | 3 |
| SLRC | 13 | 52104 | 1 |
| Average | 15 | 87256 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was $28 million in TXMD’s case. DHT Holdings Inc (NYSE:DHT) is the most popular stock in this table. On the other hand Federal Agricultural Mortgage Corp. (NYSE:AGM) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks TherapeuticsMD Inc (OTC:TXMD) is even less popular than AGM. Hedge funds dodged a bullet by taking a bearish stance towards TXMD. Our calculations showed that the top 20 most popular hedge fund stocks returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately TXMD wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); TXMD investors were disappointed as the stock returned -30.9% during the fourth quarter (through the end of November) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 70 percent of these stocks already outperformed the market so far in Q4.
Disclosure: None. This article was originally published at Insider Monkey.
