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The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Relmada Therapeutics, Inc. (NASDAQ:RLMD).
Is RLMD a good stock to buy now? Hedge funds were becoming less hopeful. The number of bullish hedge fund bets retreated by 3 lately. Relmada Therapeutics, Inc. (NASDAQ:RLMD) was in 8 hedge funds' portfolios at the end of September. The all time high for this statistics is 11. Our calculations also showed that RLMD 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 11 hedge funds in our database with RLMD holdings at the end of June.
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the 21st century investor’s toolkit there are plenty of formulas stock market investors employ to evaluate stocks. A duo of the most under-the-radar formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the elite money managers can outpace the S&P 500 by a very impressive amount (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 5 best cheap stocks to buy according to Ray Dalio to identify stocks with upside potential. 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 let's take a look at the latest hedge fund action regarding Relmada Therapeutics, Inc. (NASDAQ:RLMD).
Hedge fund activity in Relmada Therapeutics, Inc. (NASDAQ:RLMD)
At Q3's end, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -27% from the previous quarter. The graph below displays the number of hedge funds with bullish position in RLMD over the last 21 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.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Behzad Aghazadeh's Avoro Capital Advisors (venBio Select Advisor) has the biggest position in Relmada Therapeutics, Inc. (NASDAQ:RLMD), worth close to $56.4 million, accounting for 0.8% of its total 13F portfolio. Coming in second is Peter Kolchinsky of RA Capital Management, with a $29.4 million position; 0.5% of its 13F portfolio is allocated to the stock. Some other members of the smart money that hold long positions include Kevin C. Tang's Tang Capital Management, Manfred Yu's Acuta Capital Partners and Steve Cohen's Point72 Asset Management. In terms of the portfolio weights assigned to each position Tang Capital Management allocated the biggest weight to Relmada Therapeutics, Inc. (NASDAQ:RLMD), around 3.4% of its 13F portfolio. Acuta Capital Partners is also relatively very bullish on the stock, dishing out 2.83 percent of its 13F equity portfolio to RLMD.
Seeing as Relmada Therapeutics, Inc. (NASDAQ:RLMD) has experienced declining sentiment from the entirety of the hedge funds we track, it's easy to see that there is a sect of money managers that elected to cut their full holdings in the third quarter. Interestingly, Oleg Nodelman's EcoR1 Capital dropped the largest position of the 750 funds watched by Insider Monkey, worth about $9 million in stock, and Israel Englander's Millennium Management was right behind this move, as the fund dropped about $1.9 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds in the third quarter.
Let's also examine hedge fund activity in other stocks similar to Relmada Therapeutics, Inc. (NASDAQ:RLMD). We will take a look at Hanger, Inc. (NYSE:HNGR), Impinj, Inc. (NASDAQ:PI), Camtek LTD. (NASDAQ:CAMT), Orthofix Medical Inc (NASDAQ:OFIX), Calliditas Therapeutics AB (publ) (NASDAQ:CALT), Accelerate Diagnostics Inc (NASDAQ:AXDX), and Amyris Inc (NASDAQ:AMRS). This group of stocks' market caps are closest to RLMD's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HNGR,14,57038,0 PI,17,186649,-5 CAMT,8,38114,0 OFIX,17,101060,-2 CALT,11,66043,-1 AXDX,13,31316,0 AMRS,11,124955,-5 Average,13,86454,-1.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $123 million in RLMD's case. Impinj, Inc. (NASDAQ:PI) is the most popular stock in this table. On the other hand Camtek LTD. (NASDAQ:CAMT) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Relmada Therapeutics, Inc. (NASDAQ:RLMD) is even less popular than CAMT. Our overall hedge fund sentiment score for RLMD is 23.8. 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. Hedge funds dodged a bullet by taking a bearish stance towards RLMD. Our calculations showed that the top 20 most popular hedge fund stocks returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 31.6% in 2020 through December 2nd but managed to beat the market again by 16 percentage points. Unfortunately RLMD wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); RLMD investors were disappointed as the stock returned -8.9% since the end of the third quarter (through 12/2) 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 most of these stocks already outperformed the market so far in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.