Hedge funds are not perfect. They have their bad picks just like everyone else. Micron, a stock hedge funds have loved, lost 50% during the last 12 months ending in October 30. Although hedge funds are not perfect, their consensus picks do deliver solid returns, however. Our data show the top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% in the same time period, vs. a gain of 5.2% for the S&P 500 Index. Because hedge funds have a lot of resources and their consensus picks do well, we pay attention to what they think. In this article, we analyze what the elite funds think of INVUITY INC (NASDAQ:IVTY).
INVUITY INC (NASDAQ:IVTY) investors should pay attention to an increase in support from the world’s most elite money managers of late. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as StealthGas Inc. (NASDAQ:GASS), VirnetX Holding Corporation (NYSEAMEX:VHC), and Medallion Financial Corp (NASDAQ:TAXI) to gather more data points.
Follow Invuity Inc. (NASDAQ:IVTY)
Follow Invuity Inc. (NASDAQ:IVTY)
In today’s marketplace there are plenty of tools shareholders employ to grade stocks. A duo of the less known tools are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the elite fund managers can outperform the market by a solid margin (see the details here).
Now, we’re going to view the fresh action regarding INVUITY INC (NASDAQ:IVTY).
Hedge fund activity in INVUITY INC (NASDAQ:IVTY)
Heading into Q4, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 20% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Wexford Capital, managed by Charles Davidson, holds the biggest position in INVUITY INC (NASDAQ:IVTY). Wexford Capital has a $7.1 million position in the stock, comprising 1.4% of its 13F portfolio. Sitting at the No. 2 spot is Mark Kingdon of Kingdon Capital, with a $4.2 million position; 0.2% of its 13F portfolio is allocated to the company. Some other peers that hold long positions encompass James E. Flynn’s Deerfield Management, Jim O’Brien and Jonathan Dorfman’s Napier Park Global Capital and Israel Englander’s Millennium Management.
As aggregate interest increased, some big names have been driving this bullishness. Napier Park Global Capital, initiated the most outsized position in INVUITY INC (NASDAQ:IVTY). Napier Park Global Capital had $2.1 million invested in the company at the end of the quarter. Millennium Management also made a $0.5 million investment in the stock during the quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as INVUITY INC (NASDAQ:IVTY) but similarly valued. We will take a look at StealthGas Inc. (NASDAQ:GASS), VirnetX Holding Corporation (NYSEAMEX:VHC), Medallion Financial Corp (NASDAQ:TAXI), and MVC Capital, Inc. (NYSE:MVC). This group of stocks’ market valuations are closest to IVTY’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GASS | 9 | 64659 | -2 |
| VHC | 5 | 1776 | 2 |
| TAXI | 7 | 8361 | -6 |
| MVC | 8 | 23554 | -2 |
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $17 million in IVTY’s case. StealthGas Inc. (NASDAQ:GASS) is the most popular stock in this table, while VirnetX Holding Corporation (NYSEAMEX:VHC) is the least popular one with only 5 bullish hedge fund positions. INVUITY INC (NASDAQ:IVTY) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GASS might be a better candidate to consider a long position.