World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
Sientra Inc (NASDAQ:SIEN)’s stock plunged by more than 50% in one day on September 24, after the United Kingdom’s Medicines and Healthcare Products Regulatory Agency halted the sales of the company’s Slimmed products. Nevertheless, SIEN was in 10 hedge funds’ portfolios at the end of the third quarter of 2015, compared to 6 funds in our database with SIEN holdings at the end of the previous quarter. At the end of this article we will also compare SIEN to other stocks, including GSV Capital Corp (NASDAQ:GSVC), Five Star Quality Care, Inc. (NYSE:FVE), and Exa Corp (NASDAQ:EXA) to get a better sense of its popularity.
In the financial world there are a lot of methods investors have at their disposal to analyze their stock investments. Some of the less utilized methods are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can outperform their index-focused peers by a significant margin (see the details here).
Keeping this in mind, we’re going to take a glance at the key action encompassing Sientra Inc (NASDAQ:SIEN).
How have hedgies been trading Sientra Inc (NASDAQ:SIEN)?
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 67% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Samuel Isaly’s OrbiMed Advisors has the biggest position in Sientra Inc (NASDAQ:SIEN), worth close to $30.2 million, corresponding to 0.3% of its total 13F portfolio. The second largest stake is held by Jacob Gottlieb of Visium Asset Management, with a $18 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish contain Paul Orlin and Alex Porter’s Amici Capital, Israel Englander’s Millennium Management, and Craig A. Drill’s Craig Drill Capital.