Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the fourth quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Regenxbio Inc (NASDAQ:RGNX) based on that data.
Regenxbio Inc (NASDAQ:RGNX) investors should pay attention to an increase in hedge fund interest in recent months. Regenxbio Inc (NASDAQ:RGNX) was in 22 hedge funds’ portfolios at the end of March. The all time high for this statistic is 24. There were 21 hedge funds in our database with RGNX holdings at the end of December. Our calculations also showed that RGNX isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Lei Zhang of Hillhouse Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. 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. With all of this in mind let’s analyze the latest hedge fund action surrounding Regenxbio Inc (NASDAQ:RGNX).
Do Hedge Funds Think RGNX Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from the fourth quarter of 2020. On the other hand, there were a total of 19 hedge funds with a bullish position in RGNX a year ago. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
The largest stake in Regenxbio Inc (NASDAQ:RGNX) was held by Redmile Group, which reported holding $79.8 million worth of stock at the end of December. It was followed by Point72 Asset Management with a $30.9 million position. Other investors bullish on the company included Aquilo Capital Management, Hillhouse Capital Management, and Frazier Healthcare Partners. In terms of the portfolio weights assigned to each position Sonic Capital allocated the biggest weight to Regenxbio Inc (NASDAQ:RGNX), around 3.72% of its 13F portfolio. Aquilo Capital Management is also relatively very bullish on the stock, designating 3.45 percent of its 13F equity portfolio to RGNX.
As aggregate interest increased, some big names have jumped into Regenxbio Inc (NASDAQ:RGNX) headfirst. Perceptive Advisors, managed by Joseph Edelman, initiated the most valuable position in Regenxbio Inc (NASDAQ:RGNX). Perceptive Advisors had $2.4 million invested in the company at the end of the quarter. Renaissance Technologies also made a $2.2 million investment in the stock during the quarter. The other funds with brand new RGNX positions are John Overdeck and David Siegel’s Two Sigma Advisors, Paul Tudor Jones’s Tudor Investment Corp, and Jinghua Yan’s TwinBeech Capital.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Regenxbio Inc (NASDAQ:RGNX) but similarly valued. These stocks are Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT), Franchise Group, Inc. (NASDAQ:FRG), Textainer Group Holdings Limited (NYSE:TGH), Universal Corp (NYSE:UVV), Johnson Outdoors Inc. (NASDAQ:JOUT), ProAssurance Corporation (NYSE:PRA), and Porch Group, Inc. (NASDAQ:PRCH). This group of stocks’ market values are closest to RGNX’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ARQT | 14 | 610080 | 1 |
| FRG | 17 | 95715 | 3 |
| TGH | 14 | 46267 | 3 |
| UVV | 10 | 92871 | 1 |
| JOUT | 11 | 130085 | -1 |
| PRA | 13 | 168917 | -3 |
| PRCH | 27 | 413543 | -2 |
| Average | 15.1 | 222497 | 0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $222 million. That figure was $209 million in RGNX’s case. Porch Group, Inc. (NASDAQ:PRCH) is the most popular stock in this table. On the other hand Universal Corp (NYSE:UVV) is the least popular one with only 10 bullish hedge fund positions. Regenxbio Inc (NASDAQ:RGNX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for RGNX is 68.8. 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 23.8% in 2021 through July 16th and beat the market again by 7.7 percentage points. Unfortunately RGNX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on RGNX were disappointed as the stock returned 6.3% since the end of March (through 7/16) 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 many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
