Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Five Stock Picks From Hedge Fund Sophrosyne Capital

Page 1 of 2

Sophrosyne Capital is a multi strategy hedge fund founded in 2005. The firm has about $200 million in assets under management and is based in New York, NY. Sophrosyne is the name of a goddess of self-control, temperance, restraint, and moderation in Greek mythology. She was one of the goddesses released from Pandora’s Box. Benjamin Taylor is the manager and he has been with the firm since 2005. The firm just filed its Form 13F last week and we noticed a number of interesting positions.

MicroStrategy Incorporated (NASDAQ:MSTR)

First, let’s talk about why it’s important to follow funds like Sophrosyne Capital and managers like Benjamin Taylor. We track hedge funds and prominent investors because our research has shown that historically their stock picks delivered superior risk-adjusted returns. This is especially true in the small-cap space. The 50 most popular large-cap stocks among hedge funds had a monthly alpha of about 6 basis points per month between 1999 and 2012; however the 15 most popular small-cap stocks delivered a monthly alpha of 80 basis points during the same period. This means investors would have generated 10 percentage points of alpha per year simply by imitating hedge funds’ top 15 small-cap ideas. We have been tracking the performance of these stocks since the end of August 2012 and these stocks beat the market by 80 percentage points (137% return vs. S&P 500 ETF (SPY)’s 57% gain) over the last 32 months (see the details here).

Now, let’s get on to the picks. BioTelemetry, Inc. (NASDAQ:BEAT) remains as Sophrosyne Capital’s largest position in its 13F portfolio. Mr. Taylor trimmed the position likely because shares of this wireless medical technology company are very volatile. Sophrosyne Capital first started a position in BioTelemetry, Inc. (NASDAQ:BEAT) around August-September 2013 when shares were trading around $8 a share. BioTelemetry, Inc. (NASDAQ:BEAT) has since returned to that level after trading as high as almost $11 per share in January 2015. Investors are bullish on BioTelemetry, Inc. (NASDAQ:BEAT) as the company’s business continues to show strong growth. BioTelemtry reported a tenth consecutive period of year-over-year growth with fourth quarter revenues growing 32% to $44 million and EBITDA up 20% over the prior year to $6.3 million. As of the end of the first quarter, Sophrosyne held some 827,000 shares valued at $7.3 million, which was almost $2 million lower than the previous filing. Sophrosyne Capital is the second largest holder of BioTelemtry among the firms we track. J. Carlo Cannell’s Cannell Capital and Jim Simon’s Renaissance Technologies are also among the largest shareholders of the company.

Taylor also trimmed his fund’s second largest position, represented by Iradimed Corp (NASDAQ:IRMD), a $172 million company that specializes in non-magnetic intravenous (IV) infusion pump systems. The fund’s owns 339,000 shares of Iradimed Corp (NASDAQ:IRMD) at a value of $5.17 million. Iradimed Corp (NASDAQ:IRMD)’s stock tumbled in September 2014 after the FDA sent a letter to the company requesting it cease commercial distribution of its MRI IV pumps and submit a 510(k).  The stock fell below the $7 level, but has since more than doubled after the company announced it resumed domestic distribution in December.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!