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Hedge Funds Are Coming Back To Global Blood Therapeutics Inc (GBT)

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The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Global Blood Therapeutics Inc (NASDAQ:GBT).

Global Blood Therapeutics Inc (NASDAQ:GBT) shareholders have witnessed an increase in support from the world's most elite money managers in recent months. Global Blood Therapeutics Inc (NASDAQ:GBT) was in 23 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 31. Our calculations also showed that GBT isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).

Felix Baker - Baker Bros.
Felix Baker - Baker Bros.

Felix Baker of Baker Bros.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. Keeping this in mind we're going to go over the fresh hedge fund action encompassing Global Blood Therapeutics Inc (NASDAQ:GBT).

Do Hedge Funds Think GBT Is A Good Stock To Buy Now?

At Q3's end, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 44% from the previous quarter. By comparison, 29 hedge funds held shares or bullish call options in GBT a year ago. With the smart money's sentiment swirling, there exists a select group of noteworthy hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).

Is GBT A Good Stock To Buy?
Is GBT A Good Stock To Buy?

Among these funds, Perceptive Advisors held the most valuable stake in Global Blood Therapeutics Inc (NASDAQ:GBT), which was worth $112.3 million at the end of the third quarter. On the second spot was Baker Bros. Advisors which amassed $82 million worth of shares. Point72 Asset Management, Casdin Capital, and Yiheng Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Perceptive Advisors allocated the biggest weight to Global Blood Therapeutics Inc (NASDAQ:GBT), around 1.63% of its 13F portfolio. Yiheng Capital is also relatively very bullish on the stock, earmarking 1.6 percent of its 13F equity portfolio to GBT.

As one would reasonably expect, specific money managers were breaking ground themselves. Woodline Partners, managed by Michael Rockefeller and KarláKroeker, initiated the most valuable position in Global Blood Therapeutics Inc (NASDAQ:GBT). Woodline Partners had $4.1 million invested in the company at the end of the quarter. Paul Tudor Jones's Tudor Investment Corp also initiated a $2.3 million position during the quarter. The other funds with new positions in the stock are Israel Englander's Millennium Management, D. E. Shaw's D E Shaw, and Ken Griffin's Citadel Investment Group.

Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Global Blood Therapeutics Inc (NASDAQ:GBT) but similarly valued. These stocks are Vocera Communications Inc (NYSE:VCRA), Coeur Mining, Inc. (NYSE:CDE), Axcelis Technologies Inc (NASDAQ:ACLS), Dole plc (NYSE:DOLE), CSG Systems International, Inc. (NASDAQ:CSGS), Shenandoah Telecommunications Company (NASDAQ:SHEN), and Forterra, Inc. (NASDAQ:FRTA). All of these stocks' market caps match GBT's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VCRA,17,161476,-3 CDE,12,35611,-7 ACLS,22,223978,3 DOLE,18,176563,18 CSGS,18,129661,-5 SHEN,8,80532,1 FRTA,11,154569,-1 Average,15.1,137484,0.9 [/table]

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 $137 million. That figure was $383 million in GBT's case. Axcelis Technologies Inc (NASDAQ:ACLS) is the most popular stock in this table. On the other hand Shenandoah Telecommunications Company (NASDAQ:SHEN) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Global Blood Therapeutics Inc (NASDAQ:GBT) is more popular among hedge funds. Our overall hedge fund sentiment score for GBT is 82.3. 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 returned 31.1% in 2021 through December 9th but still managed to beat the market by 5.1 percentage points. Hedge funds were also right about betting on GBT as the stock returned 13.6% since the end of September (through 12/9) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.

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Disclosure: None. This article was originally published at Insider Monkey.