The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 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 September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) was in 33 hedge funds’ portfolios at the end of September. The all time high for this statistic is 42. BHVN investors should be aware of an increase in hedge fund interest recently. There were 27 hedge funds in our database with BHVN holdings at the end of June. Our calculations also showed that BHVN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Richard Driehaus of Driehaus Capital
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. Now we’re going to take a peek at the key hedge fund action regarding Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN).
Do Hedge Funds Think BHVN Is A Good Stock To Buy Now?
At the end of September, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of 22% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards BHVN over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Marshall Wace LLP was the largest shareholder of Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN), with a stake worth $377.6 million reported as of the end of September. Trailing Marshall Wace LLP was Polar Capital, which amassed a stake valued at $174.5 million. Knoll Capital Management, Armistice Capital, and Kingdon Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Knoll Capital Management allocated the biggest weight to Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN), around 59.36% of its 13F portfolio. Kingdon Capital is also relatively very bullish on the stock, dishing out 6.17 percent of its 13F equity portfolio to BHVN.
As industrywide interest jumped, key money managers were breaking ground themselves. Fisher Asset Management, managed by Ken Fisher, created the largest position in Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN). Fisher Asset Management had $37.2 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $17.9 million investment in the stock during the quarter. The other funds with brand new BHVN positions are Anand Parekh’s Alyeska Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) but similarly valued. These stocks are Algonquin Power & Utilities Corp. (NYSE:AQN), Neurocrine Biosciences, Inc. (NASDAQ:NBIX), Sunrun Inc (NASDAQ:RUN), Ascendis Pharma A/S (NASDAQ:ASND), Globe Life Inc. (NYSE:GL), Syneos Health, Inc. (NASDAQ:SYNH), and Reliance Steel & Aluminum Co. (NYSE:RS). This group of stocks’ market valuations match BHVN’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AQN | 15 | 152646 | -9 |
| NBIX | 31 | 980578 | -1 |
| RUN | 37 | 1677910 | -8 |
| ASND | 23 | 2827508 | -6 |
| GL | 27 | 775771 | -1 |
| SYNH | 33 | 474708 | 0 |
| RS | 24 | 346919 | -3 |
| Average | 27.1 | 1033720 | -4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.1 hedge funds with bullish positions and the average amount invested in these stocks was $1034 million. That figure was $1064 million in BHVN’s case. Sunrun Inc (NASDAQ:RUN) is the most popular stock in this table. On the other hand Algonquin Power & Utilities Corp. (NYSE:AQN) is the least popular one with only 15 bullish hedge fund positions. Biohaven Pharmaceutical Holding Company Ltd. (NYSE:BHVN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for BHVN is 74.5. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately, BHVN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on BHVN were disappointed as the stock returned -4.3% since the end of September (through 1/31) 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 all of these stocks already outperformed the market since 2019.
Follow Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN)
Follow Biohaven Pharmaceutical Holding Co Ltd. (NYSE:BHVN)
Suggested Articles:
- 20 largest european companies by market cap
- 15 Most Expensive Alcohols in the World in 2021
- 15 Cheapest Online Shopping Sites in USA
Disclosure: None. This article was originally published at Insider Monkey.
