After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of June 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards TG Therapeutics Inc (NASDAQ:TGTX).
Is TG Therapeutics Inc (NASDAQ:TGTX) worth your attention right now? The smart money was buying. The number of long hedge fund bets moved up by 1 recently. TG Therapeutics Inc (NASDAQ:TGTX) was in 28 hedge funds’ portfolios at the end of June. 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 Q2 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Didric Cederholm of Lion Point Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the recent hedge fund action regarding TG Therapeutics Inc (NASDAQ:TGTX).
Do Hedge Funds Think TGTX Is A Good Stock To Buy Now?
At the end of June, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from the previous quarter. By comparison, 34 hedge funds held shares or bullish call options in TGTX a year ago. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
More specifically, Alkeon Capital Management was the largest shareholder of TG Therapeutics Inc (NASDAQ:TGTX), with a stake worth $158.4 million reported as of the end of June. Trailing Alkeon Capital Management was RA Capital Management, which amassed a stake valued at $129.7 million. Maverick Capital, Lion Point, and Farallon Capital 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 Lion Point allocated the biggest weight to TG Therapeutics Inc (NASDAQ:TGTX), around 4.08% of its 13F portfolio. RA Capital Management is also relatively very bullish on the stock, designating 2.08 percent of its 13F equity portfolio to TGTX.
Consequently, specific money managers have been driving this bullishness. Fisher Asset Management, managed by Ken Fisher, established the biggest position in TG Therapeutics Inc (NASDAQ:TGTX). Fisher Asset Management had $17.5 million invested in the company at the end of the quarter. Himanshu Gulati’s Antara Capital also made a $15.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Benjamin A. Smith’s Laurion Capital Management, Mika Toikka’s AlphaCrest Capital Management, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as TG Therapeutics Inc (NASDAQ:TGTX) but similarly valued. We will take a look at ImmunityBio, Inc. (NASDAQ:IBRX), Synaptics Incorporated (NASDAQ:SYNA), Teradata Corporation (NYSE:TDC), Bank OZK (NASDAQ:OZK), Cousins Properties Incorporated (NYSE:CUZ), Quidel Corporation (NASDAQ:QDEL), and Valley National Bancorp (NYSE:VLY). This group of stocks’ market caps resemble TGTX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IBRX | 7 | 8280 | 1 |
| SYNA | 27 | 551583 | 2 |
| TDC | 26 | 504981 | 0 |
| OZK | 19 | 256386 | -6 |
| CUZ | 17 | 156078 | 1 |
| QDEL | 19 | 219103 | -9 |
| VLY | 13 | 90860 | -4 |
| Average | 18.3 | 255324 | -2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.3 hedge funds with bullish positions and the average amount invested in these stocks was $255 million. That figure was $553 million in TGTX’s case. Synaptics Incorporated (NASDAQ:SYNA) is the most popular stock in this table. On the other hand ImmunityBio, Inc. (NASDAQ:IBRX) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks TG Therapeutics Inc (NASDAQ:TGTX) is more popular among hedge funds. Our overall hedge fund sentiment score for TGTX is 78.1. 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. 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 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. Unfortunately TGTX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TGTX were disappointed as the stock returned -14.1% since the end of the second quarter (through 10/15) 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 since 2019.
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.
