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If you’d ask most stock holders, hedge funds are perceived as unimportant, outdated financial vehicles of the past.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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

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!