As we already know from media reports and hedge fund investor letters, many hedge funds lost money in the third quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with healthcare among them. Nevertheless, most investors decided to stick to their bullish theses and their long-term focus allows us to profit from the recent declines. In particular, let’s take a look at what hedge funds think about Tenax Therapeutics Inc (NASDAQ:TENX) in this article.
Tenax Therapeutics Inc (NASDAQ:TENX) investors should be aware of an increase in support from the world’s most elite money managers in the third quarter, even though the stock registered an 18% drop during the same period. At the end of this article we will also compare TENX to other stocks, including KEMET Corporation (NYSE:KEM), MAM Software Group Inc. (NASDAQ:MAMS), and Pain Therapeutics, Inc. (NASDAQ:PTIE) to get a better sense of its popularity.
Follow Tenax Therapeutics Inc. (NASDAQ:TENX)
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In the financial world, there are a lot of gauges investors put to use to appraise their holdings. A couple of the most innovative gauges are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace the S&P 500 by a solid margin (see the details here).
With all of this in mind, let’s review the new action regarding Tenax Therapeutics Inc (NASDAQ:TENX).
How have hedgies been trading Tenax Therapeutics Inc (NASDAQ:TENX)?
Heading into Q4, a total of 9 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 50% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who reported substantial positions in the last round of 13F filings.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Peter Kolchinsky’s RA Capital Management has the biggest position in Tenax Therapeutics Inc (NASDAQ:TENX), worth close to $8 million, corresponding to 1.2% of its total 13F portfolio. Coming in second is Hal Mintz’s Sabby Capital, with a $7.9 million position; 0.3% of its 13F portfolio is allocated to the company. Other professional money managers with similar optimism include Kevin Kotler’s Broadfin Capital, Jeffrey Jay and David Kroin’s Great Point Partners, and James A. Silverman’s Opaleye Management.
With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Armistice Capital, managed by Steven Boyd, created the most valuable position in Tenax Therapeutics Inc (NASDAQ:TENX), which was worth $0.3 million at the end of the quarter. Nathan Fischel’s DAFNA Capital Management also made a $0.2 million investment in the stock during the same period. The only other fund with a brand new TENX position is John Zaro’s Bourgeon Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tenax Therapeutics Inc (NASDAQ:TENX) but similarly valued. These stocks are KEMET Corporation (NYSE:KEM), MAM Software Group Inc. (NASDAQ:MAMS), Pain Therapeutics, Inc. (NASDAQ:PTIE), and OHR Pharmaceutical Inc (NASDAQ:OHRP). All of these stocks’ market caps are closest to TENX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| KEM | 12 | 10579 | 1 |
| MAMS | 4 | 25685 | 2 |
| PTIE | 9 | 23345 | -4 |
| OHRP | 6 | 1983 | -4 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $15 million, lower than the $29 million figure in TENX’s case. KEMET Corporation (NYSE:KEM) is the most popular stock in this table. On the other hand MAM Software Group Inc. (NASDAQ:MAMS) is the least popular one with only 4 bullish hedge fund positions. Tenax Therapeutics Inc (NASDAQ:TENX) is not the most popular stock in this group, but hedge fund interest is only slightly above average. This could be viewed as a positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KEM might be a better candidate to consider a long position.
