Is Radius Health Inc (NASDAQ:RDUS) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Is Radius Health Inc (NASDAQ:RDUS) going to take off soon? Investors who are in the know are in an optimistic mood. The number of long hedge fund bets rose by 4 recently. Our calculations also showed that rdus isn’t among the 30 most popular stocks among hedge funds.
If you’d ask most stock holders, hedge funds are seen as underperforming, outdated financial tools of years past. While there are over 8000 funds in operation today, We choose to focus on the moguls of this club, about 750 funds. These investment experts control the majority of the smart money’s total asset base, and by tailing their finest picks, Insider Monkey has discovered various investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s flagship hedge fund strategy outrun the S&P 500 index by around 5 percentage points per annum since its inception in May 2014 through the end of May. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 30.9% since February 2017 (through May 30th) even though the market was up nearly 24% during the same period. We just shared a list of 5 short targets in our latest quarterly update and they are already down an average of 11.9% in less than a couple of weeks whereas our long picks outperformed the market by 2 percentage points in this volatile 2 week period.
We’re going to go over the key hedge fund action encompassing Radius Health Inc (NASDAQ:RDUS).
How have hedgies been trading Radius Health Inc (NASDAQ:RDUS)?
Heading into the second quarter of 2019, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards RDUS over the last 15 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Radius Health Inc (NASDAQ:RDUS) was held by Healthcor Management LP, which reported holding $73.4 million worth of stock at the end of March. It was followed by Farallon Capital with a $40.7 million position. Other investors bullish on the company included Rubric Capital Management, Citadel Investment Group, and Millennium Management.
As aggregate interest increased, key money managers have been driving this bullishness. Oaktree Capital Management, managed by Howard Marks, established the most outsized position in Radius Health Inc (NASDAQ:RDUS). Oaktree Capital Management had $11.2 million invested in the company at the end of the quarter. Thomas Steyer’s Farallon Capital also initiated a $1 million position during the quarter. The other funds with brand new RDUS positions are Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Minhua Zhang’s Weld Capital Management, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s check out hedge fund activity in other stocks similar to Radius Health Inc (NASDAQ:RDUS). These stocks are Emerald Expositions Events, Inc. (NYSE:EEX), Upland Software Inc (NASDAQ:UPLD), Interface, Inc. (NASDAQ:TILE), and Perficient, Inc. (NASDAQ:PRFT). This group of stocks’ market valuations resemble RDUS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EEX | 6 | 5096 | -5 |
| UPLD | 28 | 170183 | 3 |
| TILE | 14 | 46564 | -2 |
| PRFT | 16 | 29517 | 2 |
| Average | 16 | 62840 | -0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $309 million in RDUS’s case. Upland Software Inc (NASDAQ:UPLD) is the most popular stock in this table. On the other hand Emerald Expositions Events, Inc. (NYSE:EEX) is the least popular one with only 6 bullish hedge fund positions. Radius Health Inc (NASDAQ:RDUS) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 1.9% in Q2 through May 30th and outperformed the S&P 500 ETF (SPY) by more than 3 percentage points. Hedge funds were also right about betting on RDUS as the stock returned 10.2% during the same period and outperformed the market by an even larger margin. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.
