Looking for high-potential stocks? Just follow the big players within the hedge fund industry. Why should you do so? Let’s take a brief look at what statistics have to say about hedge funds’ stock picking abilities to illustrate. The Standard and Poor’s 500 Index returned approximately 7.6% in the 12 months ending November 21, with more than 51% of the stocks in the index failing to beat the benchmark. Therefore, the odds that one will pin down a winner by randomly picking a stock are less than the odds in a fair coin-tossing game. Conversely, best performing hedge funds’ 30 preferred mid-cap stocks generated a return of 18% during the same 12-month period. Coincidence? It might happen to be so, but it is unlikely. Our research covering a 17-year period indicates that hedge funds’ stock picks generate superior risk-adjusted returns. That’s why we believe it is wise to check hedge fund activity before you invest your time or your savings on a stock like Aptevo Therapeutics Inc (NASDAQ:APVO) .
Aptevo Therapeutics Inc (NASDAQ:APVO) shareholders have witnessed an increase in enthusiasm from smart money of late. There were 0 hedge funds in our database with APVO holdings at the end of the previous quarter. At the end of this article we will also compare APVO to other stocks including GSE Systems, Inc. (NYSEAMEX:GVP), Bonanza Creek Energy Inc (NYSE:BCEI), and hhgregg, Inc. (NYSE:HGG) to get a better sense of its popularity.
Follow Aptevo Therapeutics Inc. (NASDAQ:APVO)
Follow Aptevo Therapeutics Inc. (NASDAQ:APVO)
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With all of this in mind, we’re going to go over the fresh action encompassing Aptevo Therapeutics Inc (NASDAQ:APVO).
How have hedgies been trading Aptevo Therapeutics Inc (NASDAQ:APVO)?
At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey were long this stock. The company went public this summer. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Joseph Edelman’s Perceptive Advisors initiated the biggest position in Aptevo Therapeutics Inc (NASDAQ:APVO), worth close to $2.5 million, corresponding to 0.2% of its total 13F portfolio. Coming in second is Sessa Capital, led by John Petry, holding a $2.5 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish comprise Noam Gottesman’s GLG Partners, D E Shaw, one of the biggest hedge funds in the world and Jim Simons’s Renaissance Technologies. We should note that Sessa Capital is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Let’s go over hedge fund activity in other stocks similar to Aptevo Therapeutics Inc (NASDAQ:APVO). These stocks are GSE Systems, Inc. (NYSEAMEX:GVP), Bonanza Creek Energy Inc (NYSE:BCEI), hhgregg, Inc. (NYSE:HGG), and Repros Therapeutics Inc (NASDAQ:RPRX). All of these stocks’ market caps resemble APVO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GVP | 4 | 1872 | 4 |
| BCEI | 8 | 4675 | -4 |
| HGG | 3 | 1567 | 1 |
| RPRX | 2 | 1436 | 0 |
As you can see these stocks had an average of 4.25 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $8 million in APVO’s case. Bonanza Creek Energy Inc (NYSE:BCEI) is the most popular stock in this table. On the other hand Repros Therapeutics Inc (NASDAQ:RPRX) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Aptevo Therapeutics Inc (NASDAQ:APVO) 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.