Is Correvio Pharma Corp. (NASDAQ:CORV) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Correvio Pharma Corp. (NASDAQ:CORV) has experienced an increase in hedge fund sentiment recently. CORV was in 9 hedge funds’ portfolios at the end of the first quarter of 2019. There were 7 hedge funds in our database with CORV holdings at the end of the previous quarter. Our calculations also showed that corv isn’t among the 30 most popular stocks among hedge funds.
In today’s marketplace there are a lot of methods investors use to value publicly traded companies. A couple of the best methods are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the best fund managers can outperform the broader indices by a very impressive amount (see the details here).
Let’s take a gander at the latest hedge fund action encompassing Correvio Pharma Corp. (NASDAQ:CORV).
How have hedgies been trading Correvio Pharma Corp. (NASDAQ:CORV)?
Heading into the second quarter of 2019, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 29% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CORV over the last 15 quarters. With hedgies’ capital changing hands, there exists a few key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Among these funds, Tamarack Capital Management held the most valuable stake in Correvio Pharma Corp. (NASDAQ:CORV), which was worth $7.6 million at the end of the first quarter. On the second spot was Clough Capital Partners which amassed $6.7 million worth of shares. Moreover, Rock Springs Capital Management, Renaissance Technologies, and Royce & Associates were also bullish on Correvio Pharma Corp. (NASDAQ:CORV), allocating a large percentage of their portfolios to this stock.
Now, key hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, created the most valuable position in Correvio Pharma Corp. (NASDAQ:CORV). Millennium Management had $0.1 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also made a $0 million investment in the stock during the quarter.
Let’s now review hedge fund activity in other stocks similar to Correvio Pharma Corp. (NASDAQ:CORV). We will take a look at Steel Connect, Inc. (NASDAQ:STCN), Matinas Biopharma Holdings, Inc. (NYSE:MTNB), BioSig Technologies, Inc. (NASDAQ:BSGM), and China XD Plastics Company Limited (NASDAQ:CXDC). All of these stocks’ market caps are similar to CORV’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| STCN | 5 | 42130 | 0 |
| MTNB | 7 | 13682 | 5 |
| BSGM | 1 | 862 | 0 |
| CXDC | 1 | 1598 | -1 |
| Average | 3.5 | 14568 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 3.5 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $22 million in CORV’s case. Matinas Biopharma Holdings, Inc. (NYSE:MTNB) is the most popular stock in this table. On the other hand BioSig Technologies, Inc. (NASDAQ:BSGM) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Correvio Pharma Corp. (NASDAQ:CORV) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately CORV wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on CORV were disappointed as the stock returned -22.8% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market in Q2.
Disclosure: None. This article was originally published at Insider Monkey.