The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Calithera Biosciences Inc (NASDAQ:CALA).
Calithera Biosciences Inc (NASDAQ:CALA) was in 6 hedge funds’ portfolios at the end of the third quarter of 2016. CALA shareholders have witnessed a decrease in hedge fund sentiment of late. There were 8 hedge funds in our database with CALA positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Perceptron, Inc. (NASDAQ:PRCP), Innodata Inc (NASDAQ:INOD), and InfuSystem Holdings, Inc. (NYSEAMEX:INFU) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, we’re going to take a look at the fresh action surrounding Calithera Biosciences Inc (NASDAQ:CALA).
How have hedgies been trading Calithera Biosciences Inc (NASDAQ:CALA)?
At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 25% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in CALA over the last 5 quarters. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Phill Gross and Robert Atchinson’s Adage Capital Management has the largest position in Calithera Biosciences Inc (NASDAQ:CALA), worth close to $10.2 million. On Adage Capital Management’s heels is Hal Mintz’s Sabby Capital, which holds a $1.1 million position. Some other peers that hold long positions comprise Millennium Management which is one of the 10 largest hedge funds in the world, Jim Simons’ Renaissance Technologies and D. E. Shaw’s D E Shaw. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.