After several tireless days, we have finished crunching the numbers from more than 700 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Dermira Inc (NASDAQ:DERM).
Dermira Inc (NASDAQ:DERM) has seen an increase in hedge fund interest recently. At the end of this article, we will also compare Dermira Inc (NASDAQ:DERM) to other stocks, including US Concrete Inc (NASDAQ:USCR), Northfield Bancorp Inc (NASDAQ:NFBK), and Regis Corporation (NYSE:RGS) to get a better sense of its popularity.
Follow Dermira Inc. (NASDAQ:DERM)
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According to most stock holders, hedge funds are assumed to be unimportant, outdated financial vehicles of years past. While there are more than 8000 funds with their doors open today, We hone in on the moguls of this club, approximately 700 funds. These investment experts orchestrate the bulk of all hedge funds’ total capital, and by following their top picks, Insider Monkey has determined numerous investment strategies that have historically outpaced the market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Now, we’re going to review the fresh action regarding Dermira Inc (NASDAQ:DERM).
How have hedgies been trading Dermira Inc (NASDAQ:DERM)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 13% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Dennis Purcell’s Aisling Capital has the number one position in Dermira Inc (NASDAQ:DERM), worth close to $25.7 million, comprising 4.5% of its total 13F portfolio. The second largest stake is held by Joseph Edelman of Perceptive Advisors, with a $11 million position; 0.9% of its 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions consist of Behzad Aghazadeh’s venBio Select Advisor, Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management, and Julian Baker and Felix Baker’s Baker Bros. Advisors.
As industrywide interest jumped, some big names have jumped into Dermira Inc (NASDAQ:DERM) headfirst. venBio Select Advisor created the most valuable position in Dermira Inc (NASDAQ:DERM). venBio Select Advisor had $8.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $5.5 million position during the quarter. The following funds were also among the new DERM investors: Dmitry Balyasny’s Balyasny Asset Management, Jason Karp’s Tourbillon Capital Partners, and Mike Vranos’ Ellington.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dermira Inc (NASDAQ:DERM) but similarly valued. These stocks are US Concrete Inc (NASDAQ:USCR), Northfield Bancorp Inc (NASDAQ:NFBK), Regis Corporation (NYSE:RGS), and Integrated Silicon Solution, Inc. (NASDAQ:ISSI). This group of stocks’ market valuations resembles Dermira Inc (NASDAQ:DERM)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| USCR | 23 | 117624 | 1 |
| NFBK | 7 | 30841 | -2 |
| RGS | 16 | 236319 | -4 |
| ISSI | 14 | 174796 | -5 |
As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $91 million in Dermira Inc (NASDAQ:DERM)’s case. US Concrete Inc (NASDAQ:USCR) is the most popular stock in this table. On the other hand, Northfield Bancorp Inc (NASDAQ:NFBK) is the least popular one with only 7 bullish hedge fund positions. Dermira Inc (NASDAQ:DERM) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, US Concrete Inc (NASDAQ:USCR) might be a better candidate to consider a long position.