The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 817 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider vTv Therapeutics Inc (NASDAQ:VTVT) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
vTv Therapeutics Inc (NASDAQ:VTVT) was in 4 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 6. VTVT investors should be aware of an increase in hedge fund sentiment in recent months. There were 3 hedge funds in our database with VTVT positions at the end of the second quarter. Our calculations also showed that VTVT isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To most shareholders, hedge funds are perceived as slow, outdated financial tools of yesteryear. While there are over 8000 funds with their doors open today, Our researchers look at the top tier of this club, about 850 funds. Most estimates calculate that this group of people preside over bulk of all hedge funds’ total asset base, and by tailing their top investments, Insider Monkey has unearthed several investment strategies that have historically outrun the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outrun the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .
John Overdeck of Two Sigma Advisors
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. 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 website. Keeping this in mind let’s take a glance at the latest hedge fund action regarding vTv Therapeutics Inc (NASDAQ:VTVT).
How have hedgies been trading vTv Therapeutics Inc (NASDAQ:VTVT)?
At the end of September, a total of 4 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in VTVT over the last 21 quarters. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Alan Frazier’s Frazier Healthcare Partners has the number one position in vTv Therapeutics Inc (NASDAQ:VTVT), worth close to $1.9 million, comprising 0.2% of its total 13F portfolio. On Frazier Healthcare Partners’s heels is John Overdeck and David Siegel of Two Sigma Advisors, with a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds and institutional investors that are bullish comprise Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and . In terms of the portfolio weights assigned to each position Frazier Healthcare Partners allocated the biggest weight to vTv Therapeutics Inc (NASDAQ:VTVT), around 0.17% of its 13F portfolio. Two Sigma Advisors is also relatively very bullish on the stock, dishing out 0.0024 percent of its 13F equity portfolio to VTVT.
As industrywide interest jumped, some big names were leading the bulls’ herd. Millennium Management, managed by Israel Englander, established the most valuable position in vTv Therapeutics Inc (NASDAQ:VTVT). Millennium Management had $0 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0 million position during the quarter.
Let’s also examine hedge fund activity in other stocks similar to vTv Therapeutics Inc (NASDAQ:VTVT). We will take a look at Olympic Steel, Inc. (NASDAQ:ZEUS), Applied Genetic Technologies Corp (NASDAQ:AGTC), Protalix BioTherapeutics Inc. (NYSE:PLX), Barnes & Noble Education Inc (NYSE:BNED), Citizens Holding Company (NASDAQ:CIZN), Target Hospitality Corp. (NASDAQ:TH), and Tyme Technologies, Inc. (NASDAQ:TYME). This group of stocks’ market values are similar to VTVT’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ZEUS | 5 | 3338 | -1 |
| AGTC | 11 | 25666 | 3 |
| PLX | 3 | 11491 | -1 |
| BNED | 11 | 13375 | -1 |
| CIZN | 1 | 787 | 0 |
| TH | 13 | 8350 | -2 |
| TYME | 3 | 4087 | -3 |
| Average | 6.7 | 9585 | -0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 6.7 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $3 million in VTVT’s case. Target Hospitality Corp. (NASDAQ:TH) is the most popular stock in this table. On the other hand Citizens Holding Company (NASDAQ:CIZN) is the least popular one with only 1 bullish hedge fund positions. vTv Therapeutics Inc (NASDAQ:VTVT) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for VTVT is 38.5. 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and still beat the market by 16.1 percentage points. A small number of hedge funds were also right about betting on VTVT as the stock returned 21.5% since the end of the third quarter (through 11/27) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
