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 March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG).
Is Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG) a sound investment right now? The smart money was becoming hopeful. The number of long hedge fund bets went up by 5 in recent months. Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG) was in 6 hedge funds’ portfolios at the end of March. The all time high for this statistic is 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that EYEG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 1 hedge funds in our database with EYEG holdings at the end of December.
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 206.8% since March 2017 and outperformed the S&P 500 ETFs by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now we’re going to check out the latest hedge fund action encompassing Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG).
Do Hedge Funds Think EYEG Is A Good Stock To Buy Now?
At the end of March, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 500% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in EYEG over the last 23 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, Armistice Capital, managed by Steven Boyd, holds the biggest position in Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG). Armistice Capital has a $16.7 million position in the stock, comprising 0.4% of its 13F portfolio. Coming in second is Renaissance Technologies, which holds a $0.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish include Greg Martinez’s Parkman Healthcare Partners, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Armistice Capital allocated the biggest weight to Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG), around 0.38% of its 13F portfolio. Parkman Healthcare Partners is also relatively very bullish on the stock, designating 0.09 percent of its 13F equity portfolio to EYEG.
Now, key money managers have jumped into Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG) headfirst. Renaissance Technologies, created the most valuable position in Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG). Renaissance Technologies had $0.7 million invested in the company at the end of the quarter. Greg Martinez’s Parkman Healthcare Partners also made a $0.4 million investment in the stock during the quarter. The other funds with brand new EYEG positions are John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group, and Michael Gelband’s ExodusPoint Capital.
Let’s now take a look at hedge fund activity in other stocks similar to Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG). These stocks are GSE Systems, Inc. (NASDAQ:GVP), Jewett-Cameron Trading Co Ltd. (NASDAQ:JCTCF), AutoWeb, Inc. (NASDAQ:AUTO), Auddia Inc. (NASDAQ:AUUD), Invivo Therapeutics Holdings Corp (NASDAQ:NVIV), Cemtrex Inc. (NASDAQ:CETX), and HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM). All of these stocks’ market caps are closest to EYEG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GVP | 4 | 2744 | 2 |
| JCTCF | 1 | 1688 | 0 |
| AUTO | 3 | 1756 | -1 |
| AUUD | 2 | 115 | 2 |
| NVIV | 3 | 521 | 1 |
| CETX | 2 | 184 | 1 |
| HTGM | 5 | 6472 | 2 |
| Average | 2.9 | 1926 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.9 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $18 million in EYEG’s case. HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) is the most popular stock in this table. On the other hand Jewett-Cameron Trading Co Ltd. (NASDAQ:JCTCF) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Eyegate Pharmaceuticals, Inc. (NASDAQ:EYEG) is more popular among hedge funds. Our overall hedge fund sentiment score for EYEG is 90. 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 gained 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. Unfortunately EYEG wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EYEG were disappointed as the stock returned -12.2% since the end of the first quarter (through 6/25) 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 most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
