Here’s Why Bristol-Myers Squibb Co (BMY), Telefonica Brasil SA (ADR) (VIV) and Three Other Stocks Plunged on Monday

Markets are trading on an optimistic note as all the major indices are in green zone. The major push for the markets comes from Hillary Clinton being seen as winner of the second presidential debate. European markets, on the other hand, remained week over the fears of a German bank crisis.

However, in the bullish market, a number of stocks have lost ground today, including Bristol-Myers Squibb Co (NYSE:BMY), Telefonica Brasil SA (ADR) (NYSE:VIV), Dover Corp (NYSE:DOV), Myriad Genetics Inc. (NASDAQ:MYGN), and Ocean Power Technologies Inc. (NASDAQ:OPTT). In this article, we are going to discuss the news that sent these stocks lower today and will analyze the hedge fund sentiment towards them.

At Insider Monkey, we track around 750 hedge funds and other institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details  about our small-cap strategy).

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Bristol-Myers Squibb Co (NYSE:BMY) stock plunged 9% as its main rival Merck reported positive lung cancer drug results. Merck’s Keytruda drug which is used for treating non-small-cell lung cancer, showed better overall survival at 18 months vis-à-vis standard care. On the other hand, Bristol-Myers Squibb yesterday presented negative late stage trial results for its Opdivo drug, which is designed to treat the same disease. Among the funds we track, 61 funds held $2.37 billion worth of Bristol-Myers Squibb Co (NYSE:BMY)’s stock at the end of June, compared to 59 investors that held $2.28 billion worth of shares a quarter earlier.

Telefonica Brasil SA (ADR) (NYSE:VIV) stock dropped more than 5% as the company announced the departure of its CEO Amos Genish. However, Genish allayed the fear stating that the company is taking steps to ensure smooth transition to new CEO Eduardo Navarro de Carvalho, who is currently the company’s Chief Commercial Digital Officer and will assume the role on January 1. Genish had assumed the position last year. The number of funds from our database long Telefonica Brasil SA (ADR) (NYSE:VIV) declined by two to 10 during the second quarter, while the total value of their holdings rose to $129 million from $119 million.

On the next page, we are going to discuss the developments that led to the decline of Dover Corp, Myriad Genetics and Ocean Power Technologies.