Hedge Funds Are Betting On Cytori Therapeutics Inc. (USA) (CYTX)

Is Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX) a marvelous investment now? Investors who are in the know are becoming more confident. The number of long hedge fund bets went up by 4 in recent months.

Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX)

If you’d ask most stock holders, hedge funds are perceived as unimportant, outdated financial vehicles of the past. While there are over 8000 funds with their doors open today, we hone in on the upper echelon of this group, around 450 funds. Most estimates calculate that this group oversees most of the hedge fund industry’s total asset base, and by tracking their highest performing stock picks, we have come up with a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Just as key, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. Just as you’d expect, there are plenty of reasons for a bullish insider to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).

Consequently, it’s important to take a glance at the recent action encompassing Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX).

What does the smart money think about Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX)?

In preparation for this year, a total of 8 of the hedge funds we track were bullish in this stock, a change of 100% from the previous quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.

Of the funds we track, RA Capital Management, managed by Peter Kolchinsky, holds the biggest position in Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX). RA Capital Management has a $5.9 million position in the stock, comprising 2.1% of its 13F portfolio. On RA Capital Management’s heels is Phill Gross and Robert Atchinson of Adage Capital Management, with a $0.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Cliff Asness’s AQR Capital Management, and Ken Griffin’s Citadel Investment Group.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. RA Capital Management, managed by Peter Kolchinsky, created the most outsized position in Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX). RA Capital Management had 5.9 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $0.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management, and Jim Simons’s Renaissance Technologies.

Insider trading activity in Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX)

Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX) has experienced 3 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX). These stocks are Durata Therapeutics Inc (NASDAQ:DRTX), Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN), OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI), ShangPharma Corp (ADR) (NYSE:SHP), and Cempra Inc (NASDAQ:CEMP). This group of stocks are in the biotechnology industry and their market caps resemble CYTX’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Durata Therapeutics Inc (NASDAQ:DRTX) 5 7 0
Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) 10 0 0
OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI) 4 0 0
ShangPharma Corp (ADR) (NYSE:SHP) 6 0 0
Cempra Inc (NASDAQ:CEMP) 4 0 0

With the results demonstrated by Insider Monkey’s time-tested strategies, retail investors must always monitor hedge fund and insider trading sentiment, and Cytori Therapeutics Inc. (USA) (NASDAQ:CYTX) applies perfectly to this mantra.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!