Last year we predicted the arrival of the first US recession since 2009 and we told in advance that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Cytokinetics, Inc. (NASDAQ:CYTK).
Cytokinetics, Inc. (NASDAQ:CYTK) has seen an increase in support from the world’s most elite money managers lately. Cytokinetics, Inc. (NASDAQ:CYTK) was in 29 hedge funds’ portfolios at the end of March. The all time high for this statistic is 26. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 26 hedge funds in our database with CYTK positions at the end of the fourth quarter. Our calculations also showed that CYTK isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Richard Driehaus of Driehaus Capital
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Do Hedge Funds Think CYTK Is A Good Stock To Buy Now?
At first quarter’s end, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 12% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in CYTK over the last 23 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Driehaus Capital held the most valuable stake in Cytokinetics, Inc. (NASDAQ:CYTK), which was worth $75.3 million at the end of the fourth quarter. On the second spot was Marshall Wace LLP which amassed $62.8 million worth of shares. Polar Capital, Deerfield Management, 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 Integral Health Asset Management allocated the biggest weight to Cytokinetics, Inc. (NASDAQ:CYTK), around 4.65% of its 13F portfolio. Burrage Capital Management is also relatively very bullish on the stock, setting aside 4.61 percent of its 13F equity portfolio to CYTK.
Consequently, specific money managers have jumped into Cytokinetics, Inc. (NASDAQ:CYTK) headfirst. Adage Capital Management, managed by Phill Gross and Robert Atchinson, created the largest position in Cytokinetics, Inc. (NASDAQ:CYTK). Adage Capital Management had $36.1 million invested in the company at the end of the quarter. Arsani William’s Logos Capital also made a $16.3 million investment in the stock during the quarter. The following funds were also among the new CYTK investors: Frank Fu’s CaaS Capital, Arthur B Cohen and Joseph Healey’s Healthcor Management LP, and Michael Gelband’s ExodusPoint Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cytokinetics, Inc. (NASDAQ:CYTK) but similarly valued. We will take a look at Steelcase Inc. (NYSE:SCS), Northwest Natural Holding Company (NYSE:NWN), ICF International Inc (NASDAQ:ICFI), Aluminum Corp. of China Limited (NYSE:ACH), Stratasys, Ltd. (NASDAQ:SSYS), Kronos Bio, Inc. (NASDAQ:KRON), and Acadia Realty Trust (NYSE:AKR). All of these stocks’ market caps resemble CYTK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SCS | 19 | 127268 | 2 |
| NWN | 10 | 28380 | 0 |
| ICFI | 12 | 28041 | -1 |
| ACH | 3 | 7519 | -1 |
| SSYS | 24 | 481918 | 8 |
| KRON | 16 | 225983 | -3 |
| AKR | 8 | 22188 | -1 |
| Average | 13.1 | 131614 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.1 hedge funds with bullish positions and the average amount invested in these stocks was $132 million. That figure was $585 million in CYTK’s case. Stratasys, Ltd. (NASDAQ:SSYS) is the most popular stock in this table. On the other hand Aluminum Corp. of China Limited (NYSE:ACH) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Cytokinetics, Inc. (NASDAQ:CYTK) is more popular among hedge funds. Our overall hedge fund sentiment score for CYTK is 88. 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 22.8% in 2021 through July 2nd and still beat the market by 6 percentage points. Unfortunately CYTK wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on CYTK were disappointed as the stock returned -11.4% since the end of the first quarter (through 7/2) 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 Cytokinetics Inc (NASDAQ:CYTK)
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Disclosure: None. This article was originally published at Insider Monkey.
