Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors' positions as of the end of the third quarter. You can find write-ups 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 and analyze what the smart money thinks of Adamas Pharmaceuticals Inc (NASDAQ:ADMS) based on that data.
Adamas Pharmaceuticals Inc (NASDAQ:ADMS) was in 17 hedge funds' portfolios at the end of September. ADMS investors should be aware of a decrease in hedge fund interest recently. There were 19 hedge funds in our database with ADMS holdings at the end of the previous quarter. Our calculations also showed that adms isn't among the 30 most popular stocks among hedge funds.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let's check out the new hedge fund action surrounding Adamas Pharmaceuticals Inc (NASDAQ:ADMS).
What does the smart money think about Adamas Pharmaceuticals Inc (NASDAQ:ADMS)?
Heading into the fourth quarter of 2018, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -11% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ADMS over the last 13 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Point72 Asset Management held the most valuable stake in Adamas Pharmaceuticals Inc (NASDAQ:ADMS), which was worth $48.9 million at the end of the third quarter. On the second spot was Broadfin Capital which amassed $26.6 million worth of shares. Moreover, Brenner West Capital Partners, Sectoral Asset Management, and Ardsley Partners were also bullish on Adamas Pharmaceuticals Inc (NASDAQ:ADMS), allocating a large percentage of their portfolios to this stock.
Since Adamas Pharmaceuticals Inc (NASDAQ:ADMS) has faced a decline in interest from the entirety of the hedge funds we track, we can see that there was a specific group of fund managers who sold off their full holdings in the third quarter. It's worth mentioning that Ken Greenberg and David Kim's Ghost Tree Capital dumped the largest position of the "upper crust" of funds monitored by Insider Monkey, valued at an estimated $7.6 million in stock. Richard Driehaus's fund, Driehaus Capital, also cut its stock, about $5.5 million worth. These moves are important to note, as total hedge fund interest fell by 2 funds in the third quarter.
Let's go over hedge fund activity in other stocks similar to Adamas Pharmaceuticals Inc (NASDAQ:ADMS). These stocks are SIGA Technologies Inc. (NASDAQ:SIGA), Universal Electronics Inc (NASDAQ:UEIC), American Public Education, Inc. (NASDAQ:APEI), and Ladenburg Thalmann Financial Services Inc. (NYSE:LTS). This group of stocks' market caps are similar to ADMS's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SIGA,9,43423,2 UEIC,5,12430,0 APEI,13,93116,-2 LTS,6,2437,0 Average,8.25,37852,0 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $38 million. That figure was $158 million in ADMS's case. American Public Education, Inc. (NASDAQ:APEI) is the most popular stock in this table. On the other hand Universal Electronics Inc (NASDAQ:UEIC) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Adamas Pharmaceuticals Inc (NASDAQ:ADMS) 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.
Disclosure: None. This article was originally published at Insider Monkey.