Insider Monkey finished processing more than 700 13F filings made by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30. In this article we are going to take a look at smart money sentiment towards Trevena Inc (NASDAQ:TRVN).
Is Trevena Inc (NASDAQ:TRVN) undervalued? The smart money is becoming hopeful. The number of bullish hedge fund bets inched up by 7 lately. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Sabine Royalty Trust (NYSE:SBR), Neuroderm Ltd (NASDAQ:NDRM), and Douglas Dynamics Inc (NYSE:PLOW) to gather more data points.
Follow Trevena Inc (NASDAQ:TRVN)
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According to most stock holders, hedge funds are assumed to be slow, outdated investment vehicles of yesteryear. While there are more than 8000 funds in operation at the moment, Our researchers look at the leaders of this club, about 700 funds. It is estimated that this group of investors oversee the majority of all hedge funds’ total asset base, and by watching their highest performing stock picks, Insider Monkey has unsheathed a number of investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to view the new action regarding Trevena Inc (NASDAQ:TRVN).
How are hedge funds trading Trevena Inc (NASDAQ:TRVN)?
Heading into Q4, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 58% from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Millennium Management, managed by Israel Englander, holds the most valuable position in Trevena Inc (NASDAQ:TRVN). Millennium Management has a $18.8 million position in the stock, comprising less than 0.1% of its 13F portfolio. The second most bullish fund manager is Balyasny Asset Management, led by Dmitry Balyasny, holding a $14.7 million position; 0.1% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors with similar optimism consist of Kevin Kotler’s Broadfin Capital, Phill Gross and Robert Atchinson’s Adage Capital Management and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, key hedge funds have jumped into Trevena Inc (NASDAQ:TRVN) headfirst. Baker Bros. Advisors, managed by Julian Baker and Felix Baker, initiated the largest position in Trevena Inc (NASDAQ:TRVN). Baker Bros. Advisors had $4.7 million invested in the company at the end of the quarter. Brad Farber’s Atika Capital also initiated a $1 million position during the quarter. The other funds with brand new TRVN positions are John Overdeck and David Siegel’s Two Sigma Advisors, Mike Vranos’ Ellington, and John Zaro’s Bourgeon Capital.
Let’s go over hedge fund activity in other stocks similar to Trevena Inc (NASDAQ:TRVN). We will take a look at Sabine Royalty Trust (NYSE:SBR), Neuroderm Ltd (NASDAQ:NDRM), Douglas Dynamics Inc (NYSE:PLOW), and Re/Max Holdings Inc (NYSE:RMAX). All of these stocks’ market caps are similar to TRVN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SBR | 5 | 9749 | 0 |
| NDRM | 12 | 128739 | 6 |
| PLOW | 16 | 28125 | 4 |
| RMAX | 5 | 10176 | -5 |
As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $80 million in TRVN’s case. Douglas Dynamics Inc (NYSE:PLOW) is the most popular stock in this table. On the other hand Sabine Royalty Trust (NYSE:SBR) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Trevena Inc (NASDAQ:TRVN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
