Hedge Funds Think These 4 Marijuana Stocks Are Pretty Dope

Next up is Cara Therapeutics Inc (NASDAQ:CARA), a clinical-stage biopharmaceutical company focused on pain treatments, which counted the support of 14 funds in our database on December 31. Those stakes represented roughly 15.5% of the company’s total shares and were valued at more than $71 million on December 31. The largest position was held by Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, a 1.21-million share position worth more than $20 million. However, Steve Cohen’s Point72 Asset Management surpassed Sectoral Asset Management early this year, taking advantage of the tumbling stock prices to increase its stake in the company to 1.43 million shares on February 16, from 530,200 shares on December 31,. Cara shares are down by more than 72% year-to-date and were not helped by the recent marijuana stocks rally.

Cara Therapeutics Inc (NASDAQ:CARA) recently reported its fourth quarter financial results, which missed estimates. The company posted a net loss of $0.35 per share, $0.02 worse than what the Street expected. That took the company’s full year loss to $24.7 million, or $1.00 per share. Revenue came in at $3.8 million.

Lastly, let’s look at Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), a small-cap biopharmaceutical company focused on the discovery, development and commercialization of drugs that target G protein-coupled receptors. As of the end of the fourth quarter of 2015, the company had 12 supporters among the funds that we track. The largest investor in our database was Stephen Dubois’ Camber Capital Management, which held 10.5 million shares worth almost $20 million on December 31.

A couple of weeks ago, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) reported its fourth quarter financial results. A net loss of $0.13 per share was in-line with expectations, but revenue of $7.8 million, down by 15.1% year-over-year, missed estimates by $460,000. On Monday, the stock gained 2%, driven by the surge in GW Pharmaceuticals, but also by the news that its own drug, Belviq, enjoyed a 3.5% increase in sales over the past week, hitting a new 2016 high, barely shy of 10,000 scripts.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned in this article.