Hedge Funds Are Piling Into C4 Therapeutics, Inc. (CCCC)

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of June. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is C4 Therapeutics, Inc. (NASDAQ:CCCC), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

C4 Therapeutics, Inc. (NASDAQ:CCCC) has experienced an increase in enthusiasm from smart money lately. C4 Therapeutics, Inc. (NASDAQ:CCCC) was in 23 hedge funds’ portfolios at the end of June. The all time high for this statistic is 22. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CCCC 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.

Peter Kolchinsky of RA Capital Management

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 we’re going to review the latest hedge fund action regarding C4 Therapeutics, Inc. (NASDAQ:CCCC).

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

At Q2’s end, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 15% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in CCCC 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, Perceptive Advisors was the largest shareholder of C4 Therapeutics, Inc. (NASDAQ:CCCC), with a stake worth $85.5 million reported as of the end of June. Trailing Perceptive Advisors was RA Capital Management, which amassed a stake valued at $52.1 million. Soleus Capital, Laurion Capital Management, and Adage Capital Management 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 Commodore Capital allocated the biggest weight to C4 Therapeutics, Inc. (NASDAQ:CCCC), around 6.27% of its 13F portfolio. Soleus Capital is also relatively very bullish on the stock, earmarking 5.07 percent of its 13F equity portfolio to CCCC.

Consequently, key hedge funds were breaking ground themselves. Driehaus Capital, managed by Richard Driehaus, assembled the biggest position in C4 Therapeutics, Inc. (NASDAQ:CCCC). Driehaus Capital had $7.9 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $6.3 million investment in the stock during the quarter. The following funds were also among the new CCCC investors: Matthew L Pinz’s Pinz Capital, Charles Clough’s Clough Capital Partners, and Frank Fu’s CaaS Capital.

Let’s also examine hedge fund activity in other stocks similar to C4 Therapeutics, Inc. (NASDAQ:CCCC). These stocks are OSI Systems, Inc. (NASDAQ:OSIS), Delek Logistics Partners LP (NYSE:DKL), Alamo Group, Inc. (NYSE:ALG), Gol Linhas Aereas Inteligentes SA (NYSE:GOL), AssetMark Financial Holdings, Inc. (NYSE:AMK), Global Net Lease, Inc. (NYSE:GNL), and PAR Technology Corporation (NYSE:PAR). All of these stocks’ market caps are closest to CCCC’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.9 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $342 million in CCCC’s case. OSI Systems, Inc. (NASDAQ:OSIS) is the most popular stock in this table. On the other hand Delek Logistics Partners LP (NYSE:DKL) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks C4 Therapeutics, Inc. (NASDAQ:CCCC) is more popular among hedge funds. Our overall hedge fund sentiment score for CCCC 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 returned 24% in 2021 through October 22nd but still managed to beat the market by 1.6 percentage points. Hedge funds were also right about betting on CCCC as the stock returned 19.2% since the end of June (through 10/22) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.

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Disclosure: None. This article was originally published at Insider Monkey.