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. Insider Monkey finished processing more than 750 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of September 30th, 2019. What do these smart investors think about CytomX Therapeutics, Inc. (NASDAQ:CTMX)?
Is CytomX Therapeutics, Inc. (NASDAQ:CTMX) ready to rally soon? The smart money is in a bullish mood. The number of long hedge fund bets advanced by 4 lately. Our calculations also showed that CTMX isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings). CTMX was in 19 hedge funds' portfolios at the end of September. There were 15 hedge funds in our database with CTMX holdings at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
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 flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_758434" align="aligncenter" width="450"] Nathan Fischel of DAFNA Capital Management[/caption]
Unlike the largest US hedge funds that are convinced Dow will soar past 40,000 or the world's most bearish hedge fund that's more convinced than ever that a crash is coming, our long-short investment strategy doesn't rely on bull or bear markets to deliver double digit returns. We only rely on the best performing hedge funds' buy/sell signals. Let's check out the new hedge fund action surrounding CytomX Therapeutics, Inc. (NASDAQ:CTMX).
Hedge fund activity in CytomX Therapeutics, Inc. (NASDAQ:CTMX)
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 27% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CTMX over the last 17 quarters. With hedgies' positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
The largest stake in CytomX Therapeutics, Inc. (NASDAQ:CTMX) was held by Perceptive Advisors, which reported holding $24 million worth of stock at the end of September. It was followed by Biotechnology Value Fund with a $13.9 million position. Other investors bullish on the company included Renaissance Technologies, D E Shaw, and Two Sigma Advisors. In terms of the portfolio weights assigned to each position Biotechnology Value Fund allocated the biggest weight to CytomX Therapeutics, Inc. (NASDAQ:CTMX), around 1.46% of its 13F portfolio. Perceptive Advisors is also relatively very bullish on the stock, setting aside 0.65 percent of its 13F equity portfolio to CTMX.
Now, key money managers were leading the bulls' herd. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in CytomX Therapeutics, Inc. (NASDAQ:CTMX). Citadel Investment Group had $1.7 million invested in the company at the end of the quarter. Nathan Fischel's DAFNA Capital Management also initiated a $0.7 million position during the quarter. The other funds with brand new CTMX positions are Peter Muller's PDT Partners, Andrew Weiss's Weiss Asset Management, and Mike Vranos's Ellington.
Let's now take a look at hedge fund activity in other stocks similar to CytomX Therapeutics, Inc. (NASDAQ:CTMX). We will take a look at AC Immune SA (NASDAQ:ACIU), BioLife Solutions, Inc. (NASDAQ:BLFS), Cyclerion Therapeutics, Inc. (NASDAQ:CYCN), and Daktronics, Inc. (NASDAQ:DAKT). This group of stocks' market valuations resemble CTMX's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ACIU,7,65919,0 BLFS,11,81791,-2 CYCN,14,79668,-3 DAKT,14,22464,5 Average,11.5,62461,0 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $62 million. That figure was $61 million in CTMX's case. Cyclerion Therapeutics, Inc. (NASDAQ:CYCN) is the most popular stock in this table. On the other hand AC Immune SA (NASDAQ:ACIU) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks CytomX Therapeutics, Inc. (NASDAQ:CTMX) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Unfortunately CTMX wasn't nearly as popular as these 20 stocks and hedge funds that were betting on CTMX were disappointed as the stock returned -15.2% during the first two months of the fourth quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 70 percent of these stocks already outperformed the market in Q4.
Disclosure: None. This article was originally published at Insider Monkey.