The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st, about a week after the S&P 500 Index bottomed. We at Insider Monkey have made an extensive database of more than 821 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded InflaRx N.V. (NASDAQ:IFRX) based on those filings.
InflaRx N.V. (NASDAQ:IFRX) has experienced an increase in activity from the world’s largest hedge funds recently. Our calculations also showed that IFRX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
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 was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 58 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’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 36% through May 18th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Felix Baker of Baker Bros.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, We take a look at lists like the 10 most profitable companies in the world to identify the compounders that are likely to deliver double digit returns. We interview hedge fund managers and ask them about their best ideas. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. For example we are checking out stocks recommended/scorned by legendary Bill Miller. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s take a peek at the recent hedge fund action encompassing InflaRx N.V. (NASDAQ:IFRX).
What have hedge funds been doing with InflaRx N.V. (NASDAQ:IFRX)?
At the end of the first quarter, a total of 9 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in IFRX over the last 18 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Baker Bros. Advisors was the largest shareholder of InflaRx N.V. (NASDAQ:IFRX), with a stake worth $6.8 million reported as of the end of September. Trailing Baker Bros. Advisors was OrbiMed Advisors, which amassed a stake valued at $4.1 million. Citadel Investment Group, Ikarian Capital, and Eversept Partners 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 Birchview Capital allocated the biggest weight to InflaRx N.V. (NASDAQ:IFRX), around 0.37% of its 13F portfolio. Eversept Partners is also relatively very bullish on the stock, dishing out 0.19 percent of its 13F equity portfolio to IFRX.
Consequently, some big names have been driving this bullishness. OrbiMed Advisors, managed by Samuel Isaly, established the most valuable position in InflaRx N.V. (NASDAQ:IFRX). OrbiMed Advisors had $4.1 million invested in the company at the end of the quarter. Matthew Strobeck’s Birchview Capital also initiated a $0.4 million position during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asset Management and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.
Let’s also examine hedge fund activity in other stocks similar to InflaRx N.V. (NASDAQ:IFRX). These stocks are Danaos Corporation (NYSE:DAC), GlycoMimetics, Inc. (NASDAQ:GLYC), Sientra Inc (NASDAQ:SIEN), and LSI Industries, Inc. (NASDAQ:LYTS). This group of stocks’ market caps match IFRX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DAC | 6 | 8980 | 0 |
| GLYC | 13 | 28346 | 1 |
| SIEN | 9 | 19799 | -6 |
| LYTS | 11 | 15848 | -3 |
| Average | 9.75 | 18243 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $16 million in IFRX’s case. GlycoMimetics, Inc. (NASDAQ:GLYC) is the most popular stock in this table. On the other hand Danaos Corporation (NYSE:DAC) is the least popular one with only 6 bullish hedge fund positions. InflaRx N.V. (NASDAQ:IFRX) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.4% in 2020 through June 22nd and still beat the market by 15.9 percentage points. A small number of hedge funds were also right about betting on IFRX as the stock returned 30.9% during the second quarter and outperformed the market by an even larger margin.
Follow Inflarx N.v. (NASDAQ:IFRX)
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Disclosure: None. This article was originally published at Insider Monkey.
