The hedge fund industry had a disappointing 2015 in terms of returns, so numerous money managers may face increasing redemption requests should their performance continue to disappoint. Nonetheless, there was a handful of money managers who managed to greatly outperform peers and the broader market last year. Steven Cohen and Dmitry Balyasny were among the hedge fund managers who beat benchmarks by a wide margin in 2015. Reportedly, Cohen’s Point72 Asset Management L.P. gained a whopping 15.5% last year after operating expenses, while Balyasny Asset Management’s Atlas Enhanced Fund was up by 5.9% in 2015. Although past performance is not necessarily indicative of future results, investors could identify high-potential stocks by closely monitoring successful money managers’ moves. For that reason, the following article will discuss four SEC filings recently submitted by the two successful managers.
At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
According to a Schedule 13G filing, Point72 Asset Management L.P. currently owns 1.66 million shares of Puma Biotechnology Inc. (NYSE:PBYI), which constitute 5.1% of the company’s outstanding shares. This denotes an increase of 1.11 million shares from the stake disclosed through the fund’s 13F filing for the third quarter. The shares of the California-based biopharmaceutical company are down by 80% over the past 12-month period, and have lost 49% year-to-date. The company primarily focuses on acquiring, developing, and commercializing innovative products to enhance cancer care. Puma Biotechnology Inc. (NYSE:PBYI)’s neratinib, or PB272, is being developed for the treatment of patients with human epidermal growth factor receptor type 2, positive breast cancer, and patients with non-small cell lung cancer, breast cancer and other tumors with a HER2 mutation. Although Puma has not generated any product sales just yet, the company anticipates to receive approval of a product candidate through the end of 2016 assuming no unforeseen safety issues arise. Ken Griffin’s Citadel Advisors upped its stake in Puma Biotechnology Inc. (NYSE:PBYI) by 168,581 shares during the fourth quarter of 2015 to 284,427 shares.
Let’s move on to the next two pages of this article, where we discuss a few other SEC filings submitted by billionaires Coven and Balyasny.