A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH).
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) was in 29 hedge funds’ portfolios at the end of September. The all time high for this statistic is 36. DCPH has seen an increase in support from the world’s most elite money managers in recent months. There were 23 hedge funds in our database with DCPH holdings at the end of June. Our calculations also showed that DCPH isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. Keeping this in mind let’s go over the key hedge fund action encompassing Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH).
Aaron Cowen of Suvretta Capital Management
Do Hedge Funds Think DCPH Is A Good Stock To Buy Now?
At the end of September, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 26% from the second quarter of 2021. On the other hand, there were a total of 30 hedge funds with a bullish position in DCPH a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) was held by Redmile Group, which reported holding $137 million worth of stock at the end of September. It was followed by OrbiMed Advisors with a $74.2 million position. Other investors bullish on the company included Logos Capital, Avoro Capital Advisors (venBio Select Advisor), and Suvretta Capital Management. In terms of the portfolio weights assigned to each position Logos Capital allocated the biggest weight to Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH), around 4.53% of its 13F portfolio. Redmile Group is also relatively very bullish on the stock, dishing out 2.39 percent of its 13F equity portfolio to DCPH.
Consequently, specific money managers have jumped into Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) headfirst. Partner Fund Management, managed by Christopher James, established the biggest position in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH). Partner Fund Management had $4.9 million invested in the company at the end of the quarter. Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management also initiated a $4.8 million position during the quarter. The other funds with brand new DCPH positions are Phill Gross and Robert Atchinson’s Adage Capital Management, Sander Gerber’s Hudson Bay Capital Management, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) but similarly valued. These stocks are CareTrust REIT Inc (NASDAQ:CTRE), Patrick Industries, Inc. (NASDAQ:PATK), BancFirst Corporation (NASDAQ:BANF), The Buckle, Inc. (NYSE:BKE), SJW Group (NYSE:SJW), Paramount Group Inc (NYSE:PGRE), and Euronav NV (NYSE:EURN). This group of stocks’ market valuations are similar to DCPH’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CTRE | 13 | 24551 | 0 |
| PATK | 19 | 89045 | -1 |
| BANF | 7 | 28729 | 0 |
| BKE | 23 | 151854 | -2 |
| SJW | 9 | 64777 | 2 |
| PGRE | 15 | 122034 | -2 |
| EURN | 15 | 66214 | -2 |
| Average | 14.4 | 78172 | -0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.4 hedge funds with bullish positions and the average amount invested in these stocks was $78 million. That figure was $493 million in DCPH’s case. The Buckle, Inc. (NYSE:BKE) is the most popular stock in this table. On the other hand BancFirst Corporation (NASDAQ:BANF) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is more popular among hedge funds. Our overall hedge fund sentiment score for DCPH is 84.2. 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 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately DCPH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on DCPH were disappointed as the stock returned -74.6% since the end of the third quarter (through 11/30) 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.
