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In this article we will analyze whether Quanterix Corporation (NASDAQ:QTRX) 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 QTRX a good stock to buy now? The best stock pickers were getting more optimistic. The number of bullish hedge fund positions went up by 2 lately. Quanterix Corporation (NASDAQ:QTRX) was in 10 hedge funds' portfolios at the end of September. The all time high for this statistics is 12. Our calculations also showed that QTRX 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). There were 8 hedge funds in our database with QTRX holdings at the end of June.
Video: Watch our video about the top 5 most popular hedge fund stocks.
In today’s marketplace there are a multitude of metrics stock market investors use to value their stock investments. Some of the most useful metrics are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the best investment managers can outperform their index-focused peers by a superb margin (see the details here).
Richard Driehaus of Driehaus Capital
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. With all of this in mind let's take a look at the recent hedge fund action surrounding Quanterix Corporation (NASDAQ:QTRX).
Do Hedge Funds Think QTRX Is A Good Stock To Buy Now?
At Q3's end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards QTRX over the last 21 quarters. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Quanterix Corporation (NASDAQ:QTRX) was held by Driehaus Capital, which reported holding $15 million worth of stock at the end of September. It was followed by Royce & Associates with a $14.5 million position. Other investors bullish on the company included Platinum Asset Management, Millennium Management, and Bridger Management. In terms of the portfolio weights assigned to each position Sio Capital allocated the biggest weight to Quanterix Corporation (NASDAQ:QTRX), around 0.83% of its 13F portfolio. Bridger Management is also relatively very bullish on the stock, earmarking 0.56 percent of its 13F equity portfolio to QTRX.
Consequently, some big names were leading the bulls' herd. Driehaus Capital, managed by Richard Driehaus, created the largest position in Quanterix Corporation (NASDAQ:QTRX). Driehaus Capital had $15 million invested in the company at the end of the quarter. Efrem Kamen's Pura Vida Investments also made a $5.1 million investment in the stock during the quarter. The only other fund with a brand new QTRX position is Jonathan Auerbach's Hound Partners.
Let's check out hedge fund activity in other stocks - not necessarily in the same industry as Quanterix Corporation (NASDAQ:QTRX) but similarly valued. We will take a look at Innoviva, Inc. (NASDAQ:INVA), Lakeland Financial Corporation (NASDAQ:LKFN), Materion Corp (NYSE:MTRN), EverQuote, Inc. (NASDAQ:EVER), Avidity Biosciences, Inc. (NASDAQ:RNA), Genetron Holdings Limited (NASDAQ:GTH), and NANO-X IMAGING LTD (NASDAQ:NNOX). All of these stocks' market caps are similar to QTRX's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position INVA,21,230768,2 LKFN,5,9688,0 MTRN,14,81395,0 EVER,21,178745,-2 RNA,17,311619,-7 GTH,12,99741,-4 NNOX,6,23654,6 Average,13.7,133659,-0.7 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.7 hedge funds with bullish positions and the average amount invested in these stocks was $134 million. That figure was $76 million in QTRX's case. Innoviva, Inc. (NASDAQ:INVA) is the most popular stock in this table. On the other hand Lakeland Financial Corporation (NASDAQ:LKFN) is the least popular one with only 5 bullish hedge fund positions. Quanterix Corporation (NASDAQ:QTRX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for QTRX is 47.6. 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 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. A small number of hedge funds were also right about betting on QTRX as the stock returned 36.1% since the end of the third quarter (through 12/8) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.