Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Radius Health Inc (NASDAQ:RDUS) has experienced an increase in activity from the world’s largest hedge funds lately. 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 Enerplus Corp (USA) (NYSE:ERF), Forum Energy Technologies Inc (NYSE:FET), and Harmony Gold Mining Co. (ADR) (NYSE:HMY) to gather more data points.
Follow Radius Health Inc. (NASDAQ:RDUS)
Follow Radius Health Inc. (NASDAQ:RDUS)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, we’re going to take a glance at the key action encompassing Radius Health Inc (NASDAQ:RDUS).
Hedge fund activity in Radius Health Inc (NASDAQ:RDUS)
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a boost of 33% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Bain Capital’s Brookside Capital has the number one position in Radius Health Inc (NASDAQ:RDUS), worth close to $128.9 million and accounting for 8.4% of its total 13F portfolio. The second most bullish fund manager is Jason Karp of Tourbillon Capital Partners, with a $110.6 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism contain Thomas Steyer’s Farallon Capital, Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management and Jason Karp’s Tourbillon Capital Partners.
As aggregate interest increased, specific money managers have been driving this bullishness. Tourbillon Capital Partners, managed by Jason Karp, created the most valuable call position in Radius Health Inc (NASDAQ:RDUS). Tourbillon Capital Partners had $33 million invested in the company at the end of the quarter. Nick Niell’s Arrowgrass Capital Partners also initiated a $32.3 million position during the quarter. The following funds were also among the new RDUS investors: Zach Schreiber’s Point State Capital, Steve Cohen’s Point72 Asset Management, and Joseph Edelman’s Perceptive Advisors.
Let’s go over hedge fund activity in other stocks similar to Radius Health Inc (NASDAQ:RDUS). These stocks are Enerplus Corp (USA) (NYSE:ERF), Forum Energy Technologies Inc (NYSE:FET), Harmony Gold Mining Co. (ADR) (NYSE:HMY), and Argo Group International Holdings, Ltd. (NASDAQ:AGII). This group of stocks’ market valuations resemble RDUS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ERF | 21 | 89116 | 7 |
| FET | 16 | 79616 | 3 |
| HMY | 7 | 28646 | -4 |
| AGII | 13 | 101675 | -5 |
As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was an impressive $555 million in RDUS’s case. Enerplus Corp (USA) (NYSE:ERF) is the most popular stock in this table. On the other hand Harmony Gold Mining Co. (ADR) (NYSE:HMY) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Radius Health Inc (NASDAQ:RDUS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: none.
