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Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 817 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Is PMVP a good stock to buy now? Money managers were turning bullish. The number of long hedge fund positions improved by 17 recently. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) was in 17 hedge funds' portfolios at the end of September. Our calculations also showed that PMVP isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
Today there are many tools stock market investors employ to analyze stocks. Two of the most useful tools are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the top investment managers can outperform the broader indices by a very impressive margin (see the details here).
Peter Kolchinsky of RA Capital Management
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. 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 website. Now we're going to take a look at the key hedge fund action regarding PMV Pharmaceuticals, Inc. (NASDAQ:PMVP).
Do Hedge Funds Think PMVP Is A Good Stock To Buy Now?
At third quarter's end, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of 17 from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in PMVP a year ago. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, OrbiMed Advisors, holds the most valuable position in PMV Pharmaceuticals, Inc. (NASDAQ:PMVP). OrbiMed Advisors has a $260.2 million position in the stock, comprising 3.3% of its 13F portfolio. Sitting at the No. 2 spot is Viking Global, led by Andreas Halvorsen, holding a $93.8 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining members of the smart money that hold long positions comprise Peter Kolchinsky's RA Capital Management, Behzad Aghazadeh's Avoro Capital Advisors (venBio Select Advisor) and Joseph Edelman's Perceptive Advisors. In terms of the portfolio weights assigned to each position OrbiMed Advisors allocated the biggest weight to PMV Pharmaceuticals, Inc. (NASDAQ:PMVP), around 3.29% of its 13F portfolio. RA Capital Management is also relatively very bullish on the stock, earmarking 1.11 percent of its 13F equity portfolio to PMVP.
As aggregate interest increased, key hedge funds have been driving this bullishness. OrbiMed Advisors, created the most valuable position in PMV Pharmaceuticals, Inc. (NASDAQ:PMVP). OrbiMed Advisors had $260.2 million invested in the company at the end of the quarter. Andreas Halvorsen's Viking Global also made a $93.8 million investment in the stock during the quarter. The other funds with brand new PMVP positions are Peter Kolchinsky's RA Capital Management, Behzad Aghazadeh's Avoro Capital Advisors (venBio Select Advisor), and Joseph Edelman's Perceptive Advisors.
Let's go over hedge fund activity in other stocks similar to PMV Pharmaceuticals, Inc. (NASDAQ:PMVP). We will take a look at Korn Ferry (NYSE:KFY), MakeMyTrip Limited (NASDAQ:MMYT), Liberty Latin America Ltd. (NASDAQ:LILA), Ameris Bancorp (NASDAQ:ABCB), Omega Flex, Inc. (NASDAQ:OFLX), NetScout Systems, Inc. (NASDAQ:NTCT), and Washington Federal Inc. (NASDAQ:WAFD). This group of stocks' market valuations match PMVP's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position KFY,21,156083,-7 MMYT,10,28638,0 LILA,17,84071,2 ABCB,13,79345,-4 OFLX,4,5878,0 NTCT,11,103777,-5 WAFD,16,59276,2 Average,13.1,73867,-1.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.1 hedge funds with bullish positions and the average amount invested in these stocks was $74 million. That figure was $549 million in PMVP's case. Korn Ferry (NYSE:KFY) is the most popular stock in this table. On the other hand Omega Flex, Inc. (NASDAQ:OFLX) is the least popular one with only 4 bullish hedge fund positions. PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PMVP is 71.2. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through December 14th and still beat the market by 15.8 percentage points. Hedge funds were also right about betting on PMVP as the stock returned 27.4% since the end of Q3 (through 12/14) 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.