At Insider Monkey, we pore over the filings of nearly 866 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of March 31st. In this article, we will use that wealth of knowledge to determine whether or not Tyme Technologies, Inc. (NASDAQ:TYME) makes for a good investment right now.
Tyme Technologies, Inc. (NASDAQ:TYME) was in 5 hedge funds' portfolios at the end of March. The all time high for this statistic is 6. TYME shareholders have witnessed an increase in hedge fund interest lately. There were 1 hedge funds in our database with TYME holdings at the end of December. Our calculations also showed that TYME isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.
David E. Shaw of D.E. Shaw
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $23 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. 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 we're going to take a peek at the fresh hedge fund action encompassing Tyme Technologies, Inc. (NASDAQ:TYME).
Do Hedge Funds Think TYME Is A Good Stock To Buy Now?
At Q1's end, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a change of 400% from the fourth quarter of 2020. By comparison, 4 hedge funds held shares or bullish call options in TYME a year ago. With the smart money's capital changing hands, there exists a few notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
Among these funds, Healthcare Value Capital held the most valuable stake in Tyme Technologies, Inc. (NASDAQ:TYME), which was worth $2.7 million at the end of the fourth quarter. On the second spot was Millennium Management which amassed $0.3 million worth of shares. Citadel Investment Group, Citadel Investment Group, and ExodusPoint 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 Healthcare Value Capital allocated the biggest weight to Tyme Technologies, Inc. (NASDAQ:TYME), around 5.95% of its 13F portfolio. ExodusPoint Capital is also relatively very bullish on the stock, earmarking 0.0006 percent of its 13F equity portfolio to TYME.
Consequently, specific money managers were leading the bulls' herd. Millennium Management, managed by Israel Englander, established the biggest position in Tyme Technologies, Inc. (NASDAQ:TYME). Millennium Management had $0.3 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also made a $0.2 million investment in the stock during the quarter. The other funds with brand new TYME positions are Michael Gelband's ExodusPoint Capital and D. E. Shaw's D E Shaw.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Tyme Technologies, Inc. (NASDAQ:TYME) but similarly valued. We will take a look at GP Strategies Corporation (NYSE:GPX), Pioneer Bancorp, Inc. (NASDAQ:PBFS), NN, Inc. (NASDAQ:NNBR), HC2 Holdings Inc (NYSE:HCHC), VistaGen Therapeutics, Inc. (NASDAQ:VTGN), Landmark Infrastructure Partners LP (NASDAQ:LMRK), and Peabody Energy Corporation (NYSE:BTU). All of these stocks' market caps are similar to TYME's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GPX,9,47058,0 PBFS,1,121,-1 NNBR,10,63948,2 HCHC,11,25421,0 VTGN,15,92423,-1 LMRK,2,917,0 BTU,21,122459,1 Average,9.9,50335,0.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.9 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $3 million in TYME's case. Peabody Energy Corporation (NYSE:BTU) is the most popular stock in this table. On the other hand Pioneer Bancorp, Inc. (NASDAQ:PBFS) is the least popular one with only 1 bullish hedge fund positions. Tyme Technologies, Inc. (NASDAQ:TYME) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TYME is 44. 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 negative signal and 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 17.4% in 2021 through June 18th and surpassed the market again by 6.1 percentage points. Unfortunately TYME wasn't nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); TYME investors were disappointed as the stock returned -27.5% since the end of March (through 6/18) 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 most of these stocks already outperformed the market in 2021.
Get real-time email alerts: Follow Tyme Technologies Inc. (NASDAQ:TYME)
Disclosure: None. This article was originally published at Insider Monkey.