As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds’ thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about Inmune Bio Inc. (NASDAQ:INMB).
Is Inmune Bio Inc. (NASDAQ:INMB) going to take off soon? Hedge funds were becoming hopeful. The number of long hedge fund bets moved up by 1 lately. Inmune Bio Inc. (NASDAQ:INMB) was in 3 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 INMB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 2 hedge funds in our database with INMB positions at the end of the fourth quarter.
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 wants to buy this $26 biotech stock for $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. Keeping this in mind let’s go over the latest hedge fund action encompassing Inmune Bio Inc. (NASDAQ:INMB).
Do Hedge Funds Think INMB Is A Good Stock To Buy Now?
At Q1’s end, a total of 3 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from one quarter earlier. By comparison, 0 hedge funds held shares or bullish call options in INMB a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Inmune Bio Inc. (NASDAQ:INMB) was held by Ikarian Capital, which reported holding $2.8 million worth of stock at the end of December. It was followed by Millennium Management with a $0.5 million position. The only other hedge fund that is bullish on the company was ExodusPoint Capital.
Now, key money managers have jumped into Inmune Bio Inc. (NASDAQ:INMB) headfirst. Millennium Management, managed by Israel Englander, created the most outsized position in Inmune Bio Inc. (NASDAQ:INMB). Millennium Management had $0.5 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also initiated a $0.2 million position during the quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Inmune Bio Inc. (NASDAQ:INMB) but similarly valued. These stocks are Venus Concept Inc. (NASDAQ:VERO), Ampco-Pittsburgh Corp. (NYSE:AP), Clipper Realty Inc. (NYSE:CLPR), Natural Gas Services Group, Inc. (NYSE:NGS), Goodrich Petroleum Corporation (NYSE:GDP), Siebert Financial Corp. (NASDAQ:SIEB), and IEC Electronics Corp. (NYSE:IEC). This group of stocks’ market caps match INMB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VERO | 7 | 13082 | 3 |
| AP | 4 | 21161 | -1 |
| CLPR | 7 | 18630 | 0 |
| NGS | 6 | 20145 | -4 |
| GDP | 5 | 21407 | -3 |
| SIEB | 3 | 831 | 2 |
| IEC | 1 | 4081 | -1 |
| Average | 4.7 | 14191 | -0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.7 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $3 million in INMB’s case. Venus Concept Inc. (NASDAQ:VERO) is the most popular stock in this table. On the other hand IEC Electronics Corp. (NYSE:IEC) is the least popular one with only 1 bullish hedge fund positions. Inmune Bio Inc. (NASDAQ:INMB) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for INMB is 52.7. 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 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. A small number of hedge funds were also right about betting on INMB as the stock returned 50.6% since the end of the first quarter (through 6/11) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
