Is Accelerate Diagnostics Inc (AXDX) a Good Stock to Buy?

Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those successful funds in these small-cap stocks. In the following paragraphs, we analyze Accelerate Diagnostics Inc (NASDAQ:AXDX) from the perspective of those successful funds.

Hedge fund interest in Accelerate Diagnostics Inc (NASDAQ:AXDX) shares was flat at the end of last quarter, with 8 hedge funds bullish on the stock. This is usually a negative indicator. At the end of this article we will also compare AXDX to other stocks including MSG Networks Inc (NYSE:MSGN), Hub Group Inc (NASDAQ:HUBG), and Moelis & Co (NYSE:MC) to get a better sense of its popularity.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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How have hedgies been trading Accelerate Diagnostics Inc (NASDAQ:AXDX)?

At the end of the third quarter, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a unchanged from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards AXDX over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Of the funds tracked by Insider Monkey, Matthew Strobeck’s Birchview Capital has the largest position in Accelerate Diagnostics Inc (NASDAQ:AXDX), worth close to $59.3 million, corresponding to 34.6% of its total 13F portfolio. Sitting at the No. 2 spot is Noah Levy and Eugene Dozortsev of Newtyn Management, with a $16.4 million position; 3.8% of its 13F portfolio is allocated to the company. Other peers that are bullish include Pasco Alfaro / Richard Tumure’s Miura Global Management, Stewart Strawbridge’s Selkirk Management and Stuart Weisbrod’s Iguana Healthcare Management. We should note that none of these hedge funds are 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.