The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 873 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th. In this article we look at what those investors think of Cidara Therapeutics Inc (NASDAQ:CDTX).
Cidara Therapeutics Inc (NASDAQ:CDTX) was in 10 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 14. CDTX shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. There were 6 hedge funds in our database with CDTX holdings at the end of March. Our calculations also showed that CDTX isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
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Do Hedge Funds Think CDTX Is A Good Stock To Buy Now?
At second quarter’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 67% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in CDTX over the last 24 quarters. 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, Mark Lampert’s Biotechnology Value Fund / BVF Inc has the biggest position in Cidara Therapeutics Inc (NASDAQ:CDTX), worth close to $8.8 million, comprising 0.3% of its total 13F portfolio. The second most bullish fund manager is Stonepine Capital, led by Timothy P. Lynch, holding a $2.4 million position; 1.3% of its 13F portfolio is allocated to the company. Remaining members of the smart money with similar optimism include Renaissance Technologies, Israel Englander’s Millennium Management and David M. Knott’s Dorset Management. In terms of the portfolio weights assigned to each position Stonepine Capital allocated the biggest weight to Cidara Therapeutics Inc (NASDAQ:CDTX), around 1.28% of its 13F portfolio. Biotechnology Value Fund / BVF Inc is also relatively very bullish on the stock, dishing out 0.33 percent of its 13F equity portfolio to CDTX.
As aggregate interest increased, key money managers have been driving this bullishness. Stonepine Capital, managed by Timothy P. Lynch, initiated the largest position in Cidara Therapeutics Inc (NASDAQ:CDTX). Stonepine Capital had $2.4 million invested in the company at the end of the quarter. James A. Silverman’s Opaleye Management also made a $0.1 million investment in the stock during the quarter. The other funds with brand new CDTX positions are Michael Gelband’s ExodusPoint Capital and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Cidara Therapeutics Inc (NASDAQ:CDTX) but similarly valued. We will take a look at MV Oil Trust (NYSE:MVO), Electromed, Inc. (NYSE:ELMD), Blue Apron Holdings, Inc. (NYSE:APRN), CN Energy Group. Inc. (NASDAQ:CNEY), Live Ventures Inc. (NASDAQ:LIVE), Caladrius Biosciences Inc (NASDAQ:CLBS), and 36Kr Holdings Inc. (NASDAQ:KRKR). This group of stocks’ market values match CDTX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MVO | 1 | 250 | 0 |
| ELMD | 6 | 4071 | 1 |
| APRN | 7 | 3696 | -2 |
| CNEY | 1 | 100 | 0 |
| LIVE | 1 | 3043 | 0 |
| CLBS | 2 | 2620 | -3 |
| KRKR | 3 | 259 | 2 |
| Average | 3 | 2006 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 3 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $16 million in CDTX’s case. Blue Apron Holdings, Inc. (NYSE:APRN) is the most popular stock in this table. On the other hand MV Oil Trust (NYSE:MVO) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Cidara Therapeutics Inc (NASDAQ:CDTX) is more popular among hedge funds. Our overall hedge fund sentiment score for CDTX is 80.4. 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 returned 25.7% in 2021 through September 27th but still managed to beat the market by 6.2 percentage points. Hedge funds were also right about betting on CDTX as the stock returned 16.3% since the end of June (through 9/27) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Cidara Therapeutics Inc. (NASDAQ:CDTX)
Follow Cidara Therapeutics Inc. (NASDAQ:CDTX)
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Disclosure: None. This article was originally published at Insider Monkey.
