We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think of Immunovant, Inc. (NASDAQ:IMVT) based on that data.
Immunovant, Inc. (NASDAQ:IMVT) has seen an increase in activity from the world’s largest hedge funds recently. Our calculations also showed that IMVT isn’t among the 30 most popular stocks among hedge funds (click for Q1 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 today’s marketplace there are tons of formulas investors can use to assess stocks. Some of the most under-the-radar formulas are hedge fund and insider trading interest. We have shown that, historically, those who follow the best picks of the top money managers can trounce the broader indices by a very impressive margin (see the details here).
Michael Castor of Sio Capital
We leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like these. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s go over the fresh hedge fund action encompassing Immunovant, Inc. (NASDAQ:IMVT).
How have hedgies been trading Immunovant, Inc. (NASDAQ:IMVT)?
At Q1’s end, a total of 28 of the hedge funds tracked by Insider Monkey were long this stock, a change of 27% from the fourth quarter of 2019. On the other hand, there were a total of 0 hedge funds with a bullish position in IMVT a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Cormorant Asset Management, managed by Bihua Chen, holds the biggest position in Immunovant, Inc. (NASDAQ:IMVT). Cormorant Asset Management has a $19.4 million position in the stock, comprising 0.9% of its 13F portfolio. The second largest stake is held by Adage Capital Management, managed by Phill Gross and Robert Atchinson, which holds a $15.9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers with similar optimism comprise Mark Lampert’s Biotechnology Value Fund / BVF Inc, Neil Shahrestani’s Ikarian Capital and Ken Greenberg and David Kim’s Ghost Tree Capital. In terms of the portfolio weights assigned to each position Ghost Tree Capital allocated the biggest weight to Immunovant, Inc. (NASDAQ:IMVT), around 2.93% of its 13F portfolio. Biotechnology Value Fund / BVF Inc is also relatively very bullish on the stock, designating 1.45 percent of its 13F equity portfolio to IMVT.
As industrywide interest jumped, some big names were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the largest position in Immunovant, Inc. (NASDAQ:IMVT). Millennium Management had $7.1 million invested in the company at the end of the quarter. Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management also initiated a $3.9 million position during the quarter. The other funds with new positions in the stock are Samuel Isaly’s OrbiMed Advisors, Doron Breen and Mori Arkin’s Sphera Global Healthcare Fund, and Michael Castor’s Sio Capital.
Let’s now review hedge fund activity in other stocks similar to Immunovant, Inc. (NASDAQ:IMVT). These stocks are Spirit Airlines Incorporated (NYSE:SAVE), Black Diamond Therapeutics, Inc. (NASDAQ:BDTX), U.S. Physical Therapy, Inc. (NYSE:USPH), and Hertz Global Holdings, Inc. (NYSE:HTZ). This group of stocks’ market values resemble IMVT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAVE | 28 | 86042 | -9 |
| BDTX | 13 | 162606 | 13 |
| USPH | 12 | 33325 | -4 |
| HTZ | 24 | 515179 | -9 |
| Average | 19.25 | 199288 | -2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $199 million. That figure was $146 million in IMVT’s case. Spirit Airlines Incorporated (NYSE:SAVE) is the most popular stock in this table. On the other hand U.S. Physical Therapy, Inc. (NYSE:USPH) is the least popular one with only 12 bullish hedge fund positions. Immunovant, Inc. (NASDAQ:IMVT) is not the most popular stock in this group but hedge fund interest is still above average. 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 8.3% in 2020 through the end of May but still beat the market by 13.2 percentage points. Hedge funds were also right about betting on IMVT as the stock returned 64.9% in Q2 (through the end of May) 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.