Hedge Funds Are Dumping GlycoMimetics, Inc. (GLYC)

At Insider Monkey, we pore over the filings of nearly 873 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of June 30th. In this article, we will use that wealth of knowledge to determine whether or not GlycoMimetics, Inc. (NASDAQ:GLYC) makes for a good investment right now.

GlycoMimetics, Inc. (NASDAQ:GLYC) has experienced a decrease in activity from the world’s largest hedge funds in recent months. GlycoMimetics, Inc. (NASDAQ:GLYC) was in 10 hedge funds’ portfolios at the end of June. The all time high for this statistic is 18. Our calculations also showed that GLYC isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

David E. Shaw of D.E. Shaw

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. 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 we’re going to go over the fresh hedge fund action regarding GlycoMimetics, Inc. (NASDAQ:GLYC).

Do Hedge Funds Think GLYC Is A Good Stock To Buy Now?

At the end of June, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards GLYC over the last 24 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Biotechnology Value Fund / BVF Inc was the largest shareholder of GlycoMimetics, Inc. (NASDAQ:GLYC), with a stake worth $22.1 million reported as of the end of June. Trailing Biotechnology Value Fund / BVF Inc was Renaissance Technologies, which amassed a stake valued at $1.8 million. Two Sigma Advisors, Millennium Management, and D E Shaw 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 Biotechnology Value Fund / BVF Inc allocated the biggest weight to GlycoMimetics, Inc. (NASDAQ:GLYC), around 0.83% of its 13F portfolio. PDT Partners is also relatively very bullish on the stock, setting aside 0.01 percent of its 13F equity portfolio to GLYC.

Due to the fact that GlycoMimetics, Inc. (NASDAQ:GLYC) has faced a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of funds that elected to cut their full holdings heading into Q3. It’s worth mentioning that Michael Castor’s Sio Capital said goodbye to the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling about $1.1 million in stock, and Noam Gottesman’s GLG Partners was right behind this move, as the fund cut about $0.1 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds heading into Q3.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as GlycoMimetics, Inc. (NASDAQ:GLYC) but similarly valued. These stocks are Bridgford Foods Corporation (NASDAQ:BRID), Rezolute, Inc. (NASDAQ:RZLT), Epsilon Energy Ltd. (NASDAQ:EPSN), Document Security Systems, Inc. (NYSE:DSS), China Customer Relations Centers, Inc. (NASDAQ:CCRC), Yumanity Therapeutics, Inc. (NASDAQ:YMTX), and Quest Resource Holding Corp (NASDAQ:QRHC). This group of stocks’ market values are similar to GLYC’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 3.3 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $29 million in GLYC’s case. Yumanity Therapeutics, Inc. (NASDAQ:YMTX) is the most popular stock in this table. On the other hand Bridgford Foods Corporation (NASDAQ:BRID) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks GlycoMimetics, Inc. (NASDAQ:GLYC) is more popular among hedge funds. Our overall hedge fund sentiment score for GLYC is 70.7. 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 25.7% in 2021 through September 27th and still beat the market by 6.2 percentage points. Unfortunately GLYC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GLYC were disappointed as the stock returned 3% since the end of the second quarter (through 9/27) 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.