A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Blueprint Medicines Corporation (NASDAQ:BPMC).
Blueprint Medicines Corporation (NASDAQ:BPMC) has experienced a decrease in support from the world’s most elite money managers in recent months. Blueprint Medicines Corporation (NASDAQ:BPMC) was in 34 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 38. Our calculations also showed that BPMC isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Kris Jenner of Rock Springs Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. With all of this in mind let’s take a look at the fresh hedge fund action regarding Blueprint Medicines Corporation (NASDAQ:BPMC).
Do Hedge Funds Think BPMC Is A Good Stock To Buy Now?
At the end of September, a total of 34 of the hedge funds tracked by Insider Monkey were long this stock, a change of -6% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in BPMC over the last 25 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
The largest stake in Blueprint Medicines Corporation (NASDAQ:BPMC) was held by Casdin Capital, which reported holding $159.4 million worth of stock at the end of September. It was followed by Alkeon Capital Management with a $130.8 million position. Other investors bullish on the company included Cadian Capital, Farallon Capital, and Rock Springs Capital Management. In terms of the portfolio weights assigned to each position Aquilo Capital Management allocated the biggest weight to Blueprint Medicines Corporation (NASDAQ:BPMC), around 9.74% of its 13F portfolio. DAFNA Capital Management is also relatively very bullish on the stock, setting aside 5.64 percent of its 13F equity portfolio to BPMC.
Because Blueprint Medicines Corporation (NASDAQ:BPMC) has witnessed falling interest from the smart money, we can see that there exists a select few hedge funds that slashed their entire stakes last quarter. It’s worth mentioning that Lei Zhang’s Hillhouse Capital Management cut the largest investment of the “upper crust” of funds monitored by Insider Monkey, valued at close to $55.9 million in stock, and Renaissance Technologies was right behind this move, as the fund sold off about $13.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 2 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to Blueprint Medicines Corporation (NASDAQ:BPMC). These stocks are Grupo Aeroportuario del Pacifico (NYSE:PAC), Ardagh Metal Packaging S.A. (NYSE:AMBP), MDU Resources Group Inc (NYSE:MDU), MGM Growth Properties LLC (NYSE:MGP), Hanesbrands Inc. (NYSE:HBI), ASGN Incorporated (NYSE:ASGN), and New York Community Bancorp, Inc. (NYSE:NYCB). This group of stocks’ market caps match BPMC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PAC | 3 | 88302 | -4 |
| AMBP | 27 | 400201 | 27 |
| MDU | 20 | 141838 | -1 |
| MGP | 27 | 536809 | -2 |
| HBI | 34 | 501052 | 1 |
| ASGN | 11 | 43470 | -4 |
| NYCB | 27 | 482594 | -3 |
| Average | 21.3 | 313467 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.3 hedge funds with bullish positions and the average amount invested in these stocks was $313 million. That figure was $911 million in BPMC’s case. Hanesbrands Inc. (NYSE:HBI) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Pacifico (NYSE:PAC) is the least popular one with only 3 bullish hedge fund positions. Blueprint Medicines Corporation (NASDAQ:BPMC) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BPMC is 79.8. 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 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately BPMC wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BPMC were disappointed as the stock returned -6.4% since the end of September (through 11/30) 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 Blueprint Medicines Corp (NASDAQ:BPMC)
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Disclosure: None. This article was originally published at Insider Monkey.
