The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Dicerna Pharmaceuticals Inc (NASDAQ:DRNA).
Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. Our calculations also showed that DRNA isn’t among the 30 most popular stocks among hedge funds.
To the average investor there are dozens of formulas shareholders can use to value stocks. Two of the most under-the-radar formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the top investment managers can outclass the market by a solid margin (see the details here).
We’re going to take a look at the new hedge fund action surrounding Dicerna Pharmaceuticals Inc (NASDAQ:DRNA).
What have hedge funds been doing with Dicerna Pharmaceuticals Inc (NASDAQ:DRNA)?
Heading into the fourth quarter of 2018, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 25% from one quarter earlier. On the other hand, there were a total of 13 hedge funds with a bullish position in DRNA at the beginning of this year. 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, Bridger Management was the largest shareholder of Dicerna Pharmaceuticals Inc (NASDAQ:DRNA), with a stake worth $84.4 million reported as of the end of September. Trailing Bridger Management was RA Capital Management, which amassed a stake valued at $60 million. EcoR1 Capital, Cormorant Asset Management, and Adage Capital Management were also very fond of the stock, giving the stock large weights in their portfolios.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Biotechnology Value Fund / BVF Inc, managed by Mark Lampert, created the largest position in Dicerna Pharmaceuticals Inc (NASDAQ:DRNA). Biotechnology Value Fund / BVF Inc had $17.6 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Efrem Kamen’s Pura Vida Investments and Michael Platt and William Reeves’s BlueCrest Capital Mgmt..
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) but similarly valued. We will take a look at Cara Therapeutics, Inc. (NASDAQ:CARA), CoBiz Financial Inc (NASDAQ:COBZ), Tutor Perini Corp (NYSE:TPC), and Newpark Resources Inc (NYSE:NR). This group of stocks’ market values resemble DRNA’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CARA | 11 | 45623 | 6 |
| COBZ | 14 | 118675 | -4 |
| TPC | 7 | 5230 | 2 |
| NR | 14 | 56370 | -2 |
| Average | 11.5 | 56475 | 0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was $382 million in DRNA’s case. CoBiz Financial Inc (NASDAQ:COBZ) is the most popular stock in this table. On the other hand Tutor Perini Corp (NYSE:TPC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Dicerna Pharmaceuticals Inc (NASDAQ:DRNA) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None. This article was originally published at Insider Monkey.
