Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the second quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of TG Therapeutics Inc (NASDAQ:TGTX) based on that data and determine whether they were really smart about the stock.
TG Therapeutics Inc (NASDAQ:TGTX) was in 34 hedge funds’ portfolios at the end of June. The all time high for this statistics is 26. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. TGTX has seen an increase in activity from the world’s largest hedge funds recently. There were 26 hedge funds in our database with TGTX positions at the end of the first quarter. Our calculations also showed that TGTX isn’t among the 30 most popular stocks among hedge funds (click for Q2 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.
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 101% since March 2017 and outperformed the S&P 500 ETFs by more than 56 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (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 leave no stone unturned when looking for the next great investment idea. For example, this “mom” trader turned $2000 into $2 million within 2 years. So, we are checking out her best trade idea of the month. Cannabis stocks are roaring back in 2020, which is why we are also checking out this under-the-radar stock. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 let’s view the latest hedge fund action surrounding TG Therapeutics Inc (NASDAQ:TGTX).
How have hedgies been trading TG Therapeutics Inc (NASDAQ:TGTX)?
At second quarter’s end, a total of 34 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 31% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TGTX over the last 20 quarters. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were adding to their stakes substantially (or already accumulated large positions).
More specifically, RA Capital Management was the largest shareholder of TG Therapeutics Inc (NASDAQ:TGTX), with a stake worth $249.1 million reported as of the end of September. Trailing RA Capital Management was Great Point Partners, which amassed a stake valued at $64.7 million. Eversept Partners, Alkeon Capital 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 Eversept Partners allocated the biggest weight to TG Therapeutics Inc (NASDAQ:TGTX), around 7.87% of its 13F portfolio. Great Point Partners is also relatively very bullish on the stock, setting aside 5.17 percent of its 13F equity portfolio to TGTX.
With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Farallon Capital, created the most valuable position in TG Therapeutics Inc (NASDAQ:TGTX). Farallon Capital had $29.2 million invested in the company at the end of the quarter. Didric Cederholm’s Lion Point also initiated a $17.5 million position during the quarter. The following funds were also among the new TGTX investors: Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management, Noam Gottesman’s GLG Partners, and Michael Rockefeller and KarláKroeker’s Woodline Partners.
Let’s also examine hedge fund activity in other stocks similar to TG Therapeutics Inc (NASDAQ:TGTX). We will take a look at Sabre Corporation (NASDAQ:SABR), NCR Corporation (NYSE:NCR), Independent Bank Corp (NASDAQ:INDB), Viela Bio, Inc. (NASDAQ:VIE), Pacira Biosciences Inc (NASDAQ:PCRX), Vishay Intertechnology, Inc. (NYSE:VSH), and Sensient Technologies Corporation (NYSE:SXT). All of these stocks’ market caps resemble TGTX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SABR | 39 | 412328 | 9 |
| NCR | 32 | 195774 | 0 |
| INDB | 7 | 10886 | 3 |
| VIE | 8 | 241277 | 2 |
| PCRX | 29 | 553399 | 3 |
| VSH | 28 | 333650 | 5 |
| SXT | 23 | 170066 | 0 |
| Average | 23.7 | 273911 | 3.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.7 hedge funds with bullish positions and the average amount invested in these stocks was $274 million. That figure was $632 million in TGTX’s case. Sabre Corporation (NASDAQ:SABR) is the most popular stock in this table. On the other hand Independent Bank Corp (NASDAQ:INDB) is the least popular one with only 7 bullish hedge fund positions. TG Therapeutics Inc (NASDAQ:TGTX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TGTX is 82.2. 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 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 33% in 2020 through the end of August and still beat the market by 23.2 percentage points. Hedge funds were also right about betting on TGTX as the stock returned 27.3% since Q2 and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
