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If you’d ask most stock holders, hedge funds are perceived as unimportant, outdated financial vehicles of the past.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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools 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!