The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Invivo Therapeutics Holdings Corp (NASDAQ:NVIV).
Is NVIV a good stock to buy? Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) has experienced an increase in enthusiasm from smart money in recent months. Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) was in 3 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 5. There were 2 hedge funds in our database with NVIV holdings at the end of December. Our calculations also showed that NVIV isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
John Overdeck of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $26 biotech stock for $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s review the new hedge fund action regarding Invivo Therapeutics Holdings Corp (NASDAQ:NVIV).
Do Hedge Funds Think NVIV Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in NVIV over the last 23 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 Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) was held by Renaissance Technologies, which reported holding $0.4 million worth of stock at the end of December. It was followed by Citadel Investment Group with a $0.1 million position. The only other hedge fund that is bullish on the company was Millennium Management.
With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, initiated the largest position in Invivo Therapeutics Holdings Corp (NASDAQ:NVIV). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0 million position during the quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) but similarly valued. These stocks are Cemtrex Inc. (NASDAQ:CETX), HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM), Psychemedics Corp. (NASDAQ:PMD), Summit Wireless Technologies, Inc. (NASDAQ:WISA), Kewaunee Scientific Corporation (NASDAQ:KEQU), Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL), and Siyata Mobile Inc. (NASDAQ:SYTA). This group of stocks’ market values are closest to NVIV’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CETX | 2 | 184 | 1 |
| HTGM | 5 | 6472 | 2 |
| PMD | 3 | 3793 | -1 |
| WISA | 4 | 619 | 2 |
| KEQU | 3 | 3008 | 0 |
| FFHL | 1 | 2962 | 0 |
| SYTA | 1 | 755 | 0 |
| Average | 2.7 | 2542 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.7 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $1 million in NVIV’s case. HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) is the most popular stock in this table. On the other hand Fuwei Films (Holdings) Co., Ltd (NASDAQ:FFHL) is the least popular one with only 1 bullish hedge fund positions. Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NVIV is 49. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 17.2% in 2021 through June 11th and beat the market again by 3.3 percentage points. Unfortunately NVIV wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NVIV were disappointed as the stock returned -21.2% since the end of March (through 6/11) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Invivo Therapeutics Holdings Corp. (NASDAQ:NVIV)
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Disclosure: None. This article was originally published at Insider Monkey.
