You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Myokardia Inc (NASDAQ:MYOK) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. MYOK was in 15 hedge funds’ portfolios at the end of September. There were 6 hedge funds in our database with MYOK positions at the end of the previous quarter. At the end of this article we will also compare MYOK to other stocks including Barnes & Noble Education Inc (NYSE:BNED), Triton International Limited(NYSE:TRTN), and Ennis, Inc. (NYSE:EBF) to get a better sense of its popularity.
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What have hedge funds been doing with Myokardia Inc (NASDAQ:MYOK)?
At Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 150% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MYOK 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.
When looking at the institutional investors followed by Insider Monkey, Bihua Chen’s Cormorant Asset Management has the most valuable position in Myokardia Inc (NASDAQ:MYOK), worth close to $26.2 million, corresponding to 2.9% of its total 13F portfolio. On Cormorant Asset Management’s heels is Partner Fund Management, led by Christopher James, which holds a $19.5 million position. Remaining members of the smart money with similar optimism include Joseph Edelman’s Perceptive Advisors, James E. Flynn’s Deerfield Management and Richard Driehaus’ Driehaus Capital. 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.
As aggregate interest increased, key hedge funds were leading the bulls’ herd. Baker Bros. Advisors, led by Julian Baker and Felix Baker, assembled the most outsized position in Myokardia Inc (NASDAQ:MYOK). Baker Bros. Advisors had $1.6 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $1.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Millennium Management, one of the 10 largest hedge funds in the world, John Fichthorn’s Dialectic Capital Management, and Louis Bacon’s Moore Global Investments.
Let’s also examine hedge fund activity in other stocks similar to Myokardia Inc (NASDAQ:MYOK). These stocks are Barnes & Noble Education Inc (NYSE:BNED), Triton International Limited(NYSE:TRTN), Ennis, Inc. (NYSE:EBF), and AG Mortgage Investment Trust Inc (NYSE:MITT). All of these stocks’ market caps match MYOK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BNED | 14 | 94174 | -2 |
| TRTN | 12 | 16853 | 3 |
| EBF | 13 | 35161 | 0 |
| MITT | 6 | 11392 | 0 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $39 million. That figure was $81 million in MYOK’s case. Barnes & Noble Education Inc (NYSE:BNED) is the most popular stock in this table. On the other hand AG Mortgage Investment Trust Inc (NYSE:MITT) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Myokardia Inc (NASDAQ:MYOK) 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.
Disclosure: None
