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In this article we will analyze whether Kymera Therapeutics, Inc. (NASDAQ:KYMR) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is KYMR stock a buy? Kymera Therapeutics, Inc. (NASDAQ:KYMR) was in 16 hedge funds' portfolios at the end of March. The all time high for this statistic is 22. KYMR has experienced an increase in activity from the world's largest hedge funds in recent months. There were 15 hedge funds in our database with KYMR positions at the end of the fourth quarter. Our calculations also showed that KYMR isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Felix Baker of Baker Bros.
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Do Hedge Funds Think KYMR Is A Good Stock To Buy Now?
At Q1's end, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 7% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards KYMR over the last 23 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Biotechnology Value Fund / BVF Inc was the largest shareholder of Kymera Therapeutics, Inc. (NASDAQ:KYMR), with a stake worth $102.2 million reported as of the end of March. Trailing Biotechnology Value Fund / BVF Inc was Redmile Group, which amassed a stake valued at $101.2 million. Baker Bros. Advisors, Rock Springs Capital Management, and Logos 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 Biotechnology Value Fund / BVF Inc allocated the biggest weight to Kymera Therapeutics, Inc. (NASDAQ:KYMR), around 3.83% of its 13F portfolio. Redmile Group is also relatively very bullish on the stock, dishing out 1.42 percent of its 13F equity portfolio to KYMR.
Now, key money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, assembled the biggest position in Kymera Therapeutics, Inc. (NASDAQ:KYMR). Millennium Management had $5 million invested in the company at the end of the quarter. Ken Griffin's Citadel Investment Group also initiated a $4.8 million position during the quarter. The only other fund with a new position in the stock is Dmitry Balyasny's Balyasny Asset Management.
Let's check out hedge fund activity in other stocks similar to Kymera Therapeutics, Inc. (NASDAQ:KYMR). We will take a look at Evolent Health Inc (NYSE:EVH), NBT Bancorp Inc. (NASDAQ:NBTB), Monmouth Real Estate Investment Corp. (NYSE:MNR), Sapiens International Corporation N.V. (NASDAQ:SPNS), Scholar Rock Holding Corporation (NASDAQ:SRRK), Provident Financial Services, Inc. (NYSE:PFS), and Afya Limited (NASDAQ:AFYA). This group of stocks' market valuations match KYMR's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position EVH,22,344398,4 NBTB,6,10908,-5 MNR,13,58825,1 SPNS,12,46366,-2 SRRK,14,170425,0 PFS,11,24090,0 AFYA,5,11779,-3 Average,11.9,95256,-0.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.9 hedge funds with bullish positions and the average amount invested in these stocks was $95 million. That figure was $346 million in KYMR's case. Evolent Health Inc (NYSE:EVH) is the most popular stock in this table. On the other hand Afya Limited (NASDAQ:AFYA) is the least popular one with only 5 bullish hedge fund positions. Kymera Therapeutics, Inc. (NASDAQ:KYMR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for KYMR is 60.2. 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 gained 28.5% in 2021 through July 23rd and still beat the market by 10.1 percentage points. Hedge funds were also right about betting on KYMR as the stock returned 49.6% since the end of Q1 (through 7/23) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.