How do you pick the next stock to invest in? One way would be to spend hours of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don’t always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Summit Therapeutics PLC (ADR) (NASDAQ:SMMT).
Hedge fund interest in Summit Therapeutics PLC (ADR) (NASDAQ:SMMT) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare SMMT to other stocks including Cenveo, Inc. (NYSE:CVO), Ignite Restaurant Group Inc (NASDAQ:IRG), and Vince Holding Corp (NYSE:VNCE) to get a better sense of its popularity.
Today there are tons of tools stock market investors can use to size up publicly traded companies. A couple of the most innovative tools are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace the broader indices by a superb amount (see the details here).
Keeping this in mind, let’s check out the fresh action regarding Summit Therapeutics PLC (ADR) (NASDAQ:SMMT).
How have hedgies been trading Summit Therapeutics PLC (ADR) (NASDAQ:SMMT)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
Among the funds from our database, billionaire Steve Cohen’s Point72 Asset Management reported the largest stake in Summit Therapeutics, which was valued at $9.6 million in stock at the end of September. Point72 was followed by Warren Lammert’s Granite Point Capital, which disclosed a $1.3 million position in the company in its latest 13F filing.