Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) in this article.
Is RVPH a good stock to buy? The smart money was becoming hopeful. The number of long hedge fund positions rose by 2 lately. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) was in 5 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that RVPH isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 3 hedge funds in our database with RVPH holdings at the end of December.
In the 21st century investor’s toolkit there are a large number of gauges investors have at their disposal to grade stocks. A couple of the most innovative gauges are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best fund managers can outperform the S&P 500 by a solid margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Paul Glazer of Glazer Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $23 biotech stock and is trying to buy the rest for around $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 we’re going to analyze the fresh hedge fund action regarding Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH).
Do Hedge Funds Think RVPH Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 67% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in RVPH a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Hal Mintz’s Sabby Capital has the largest position in Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), worth close to $2.4 million, amounting to 0.5% of its total 13F portfolio. On Sabby Capital’s heels is BlueCrest Capital Mgmt., managed by Michael Platt and William Reeves, which holds a $0.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Paul Glazer’s Glazer Capital, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Sabby Capital allocated the biggest weight to Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), around 0.47% of its 13F portfolio. Sabby Capital is also relatively very bullish on the stock, setting aside 0.03 percent of its 13F equity portfolio to RVPH.
As aggregate interest increased, specific money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, created the most outsized position in Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH). Citadel Investment Group had $0.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.2 million investment in the stock during the quarter. The only other fund with a brand new RVPH position is Hal Mintz’s Sabby Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) but similarly valued. These stocks are Net Element Inc (PINK:NETE), Cyclo Therapeutics, Inc. (NASDAQ:CYTH), BK Technologies Corp. (NYSE:BKTI), Harvest Capital Credit Corporation (NASDAQ:HCAP), Happiness Biotech Group Limited (NASDAQ:HAPP), Tantech Holdings Ltd. (NASDAQ:TANH), and Dogness (International) Corporation (NASDAQ:DOGZ). This group of stocks’ market valuations match RVPH’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NETE | 2 | 324 | -2 |
| CYTH | 1 | 141 | -2 |
| BKTI | 1 | 2958 | 0 |
| HCAP | 2 | 728 | 0 |
| HAPP | 2 | 1995 | -1 |
| TANH | 3 | 566 | 1 |
| DOGZ | 2 | 198 | 2 |
| Average | 1.9 | 987 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 1.9 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $4 million in RVPH’s case. Tantech Holdings Ltd. (NASDAQ:TANH) is the most popular stock in this table. On the other hand Cyclo Therapeutics, Inc. (NASDAQ:CYTH) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is more popular among hedge funds. Our overall hedge fund sentiment score for RVPH is 87. 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. 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 17.4% in 2021 through June 18th and still beat the market by 6.1 percentage points. Unfortunately RVPH wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on RVPH were disappointed as the stock returned -14.6% since the end of the first quarter (through 6/18) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.