The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards MeiraGTx Holdings plc (NASDAQ:MGTX).
Is MeiraGTx Holdings plc (NASDAQ:MGTX) undervalued? Investors who are in the know were cutting their exposure. The number of long hedge fund bets went down by 3 lately. MeiraGTx Holdings plc (NASDAQ:MGTX) was in 10 hedge funds’ portfolios at the end of June. The all time high for this statistic is 21. Our calculations also showed that MGTX isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 13 hedge funds in our database with MGTX positions at the end of the first quarter.
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Joseph Edelman of Perceptive Advisors
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Do Hedge Funds Think MGTX Is A Good Stock To Buy Now?
At second quarter’s end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -23% from the previous quarter. On the other hand, there were a total of 18 hedge funds with a bullish position in MGTX a year ago. So, let’s review 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, Joseph Edelman’s Perceptive Advisors has the most valuable position in MeiraGTx Holdings plc (NASDAQ:MGTX), worth close to $107.7 million, accounting for 1.4% of its total 13F portfolio. The second largest stake is held by OrbiMed Advisors, which holds a $63.6 million position; 0.6% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Ari Zweiman’s 683 Capital Partners and Chuck Royce’s Royce & Associates. In terms of the portfolio weights assigned to each position Prosight Capital allocated the biggest weight to MeiraGTx Holdings plc (NASDAQ:MGTX), around 2.65% of its 13F portfolio. Perceptive Advisors is also relatively very bullish on the stock, dishing out 1.4 percent of its 13F equity portfolio to MGTX.
Seeing as MeiraGTx Holdings plc (NASDAQ:MGTX) has faced declining sentiment from the smart money, we can see that there lies a certain “tier” of money managers who were dropping their entire stakes heading into Q3. At the top of the heap, Renaissance Technologies said goodbye to the biggest position of all the hedgies followed by Insider Monkey, worth close to $0.6 million in stock. Israel Englander’s fund, Millennium Management, also sold off its stock, about $0.6 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 3 funds heading into Q3.
Let’s check out hedge fund activity in other stocks similar to MeiraGTx Holdings plc (NASDAQ:MGTX). These stocks are Gamco Investors Inc. (NYSE:GBL), Evolus, Inc. (NASDAQ:EOLS), Digi International Inc. (NASDAQ:DGII), Duluth Holdings Inc. (NASDAQ:DLTH), Clene Inc. (NASDAQ:CLNN), SeaSpine Holdings Corp (NASDAQ:SPNE), and Annovis Bio, Inc. (NYSE:ANVS). This group of stocks’ market valuations are closest to MGTX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GBL | 6 | 14739 | 2 |
| EOLS | 12 | 42126 | 5 |
| DGII | 7 | 50229 | -5 |
| DLTH | 8 | 12099 | 1 |
| CLNN | 4 | 1863 | -4 |
| SPNE | 13 | 75295 | 0 |
| ANVS | 7 | 25335 | 1 |
| Average | 8.1 | 31669 | 0 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.1 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $254 million in MGTX’s case. SeaSpine Holdings Corp (NASDAQ:SPNE) is the most popular stock in this table. On the other hand Clene Inc. (NASDAQ:CLNN) is the least popular one with only 4 bullish hedge fund positions. MeiraGTx Holdings plc (NASDAQ:MGTX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MGTX is 49.6. 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 25.7% in 2021 through September 27th and beat the market again by 6.2 percentage points. Unfortunately MGTX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MGTX were disappointed as the stock returned -12.3% since the end of June (through 9/27) 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 Meiragtx Holdings Plc (NASDAQ:MGTX)
Follow Meiragtx Holdings Plc (NASDAQ:MGTX)
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Disclosure: None. This article was originally published at Insider Monkey.
