In this article we will analyze whether Caribou Biosciences Inc. (NASDAQ:CRBU) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is Caribou Biosciences Inc. (NASDAQ:CRBU) a good investment right now? Investors who are in the know were taking an optimistic view. The number of bullish hedge fund bets moved up by 26 recently. Caribou Biosciences Inc. (NASDAQ:CRBU) was in 26 hedge funds’ portfolios at the end of September. Our calculations also showed that CRBU isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. Now we’re going to view the new hedge fund action encompassing Caribou Biosciences Inc. (NASDAQ:CRBU).
Lee Ainslie of Maverick Capital
Do Hedge Funds Think CRBU Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 26 from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CRBU over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Caribou Biosciences Inc. (NASDAQ:CRBU) was held by Partner Fund Management, which reported holding $88.2 million worth of stock at the end of September. It was followed by Farallon Capital with a $70.7 million position. Other investors bullish on the company included Alkeon Capital Management, Maverick Capital, and Coatue Management. In terms of the portfolio weights assigned to each position 72 Investment Holdings allocated the biggest weight to Caribou Biosciences Inc. (NASDAQ:CRBU) , around 14.13% of its 13F portfolio. Partner Fund Management is also relatively very bullish on the stock, setting aside 2.59 percent of its 13F equity portfolio to CRBU.
As aggregate interest increased, key money managers have been driving this bullishness. Partner Fund Management, managed by Christopher James, assembled the most outsized position in Caribou Biosciences Inc. (NASDAQ:CRBU) . Partner Fund Management had $88.2 million invested in the company at the end of the quarter. Farallon Capital also made a $70.7 million investment in the stock during the quarter. The other funds with brand new CRBU positions are Panayotis Takis Sparaggis’s Alkeon Capital Management, Lee Ainslie’s Maverick Capital, and Philippe Laffont’s Coatue Management.
Let’s also examine hedge fund activity in other stocks similar to Caribou Biosciences Inc. (NASDAQ:CRBU) . We will take a look at Global Industrial Company (NYSE:GIC), MGP Ingredients Inc (NASDAQ:MGPI), La-Z-Boy Incorporated (NYSE:LZB), U.S. Physical Therapy, Inc. (NYSE:USPH), Ocugen, Inc. (NASDAQ:OCGN), Golar LNG Limited (NASDAQ:GLNG), and Franchise Group, Inc. (NASDAQ:FRG). All of these stocks’ market caps match CRBU’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GIC | 11 | 34388 | 0 |
| MGPI | 13 | 32105 | -1 |
| LZB | 19 | 83710 | -2 |
| USPH | 15 | 30692 | 0 |
| OCGN | 8 | 22198 | -2 |
| GLNG | 20 | 317601 | 3 |
| FRG | 16 | 127978 | -3 |
| Average | 14.6 | 92667 | -0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.6 hedge funds with bullish positions and the average amount invested in these stocks was $93 million. That figure was $298 million in CRBU’s case. Golar LNG Limited (NASDAQ:GLNG) is the most popular stock in this table. On the other hand Ocugen, Inc. (NASDAQ:OCGN) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Caribou Biosciences Inc. (NASDAQ:CRBU) is more popular among hedge funds. Our overall hedge fund sentiment score for CRBU is 90. 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 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Unfortunately CRBU wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CRBU were disappointed as the stock returned -25.3% since the end of the third quarter (through 12/9) 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.
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Disclosure: None. This article was originally published at Insider Monkey.