Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts, usually don’t make them change their opinion towards a company. This time it may be different. During the third quarter we observed increased volatility and small-cap stocks underperformed the market. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Enzo Biochem, Inc. (NYSE:ENZ) to find out whether it was one of their high conviction long-term ideas.
Amid a relatively high valuation (the stock is trading at around 38 times earnings) Enzo Biochem has seen a decrease in support from the world’s most elite money managers in recent months. At the end of this article we will also compare ENZ to other stocks, including Information Services Group, Inc. (NASDAQ:III), Rosetta Stone Inc (NYSE:RST), and Owens Realty Mortgage Inc (NYSEMKT:ORM) to get a better sense of its popularity.
At the moment there are a multitude of methods shareholders use to assess their stock investments. Some of the most under-the-radar methods are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can outpace the broader indices by a superb margin (see the details here).
With all of this in mind, we’re going to take a peek at the recent action surrounding Enzo Biochem, Inc. (NYSE:ENZ).
How have hedgies been trading Enzo Biochem, Inc. (NYSE:ENZ)?
At the Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of -9% from the second quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jim Simons’ Renaissance Technologies has the number one position in Enzo Biochem, Inc. (NYSE:ENZ), worth close to $3.5 million, accounting for less than 0.1% of its total 13F portfolio. The second most bullish fund is Millennium Management, led by Israel Englander, holding a $1.7 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions contain Philip Hempleman’s Ardsley Partners, Mark Coe’s Coe Capital Management, and D. E. Shaw’s D E Shaw.