Between June 25 and October 30th the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Nevro Corp (NYSE:NVRO) and see how the stock is affected by the recent hedge fund activity.
Nevro Corp (NYSE:NVRO) was in 21 hedge funds’ portfolios at the end of the third quarter of 2015. NVRO has seen an increase in hedge fund sentiment lately. There were 19 hedge funds in our database with NVRO positions at the end of the previous quarter. At the end of this article we will also compare NVRO to other stocks, including Surgical Care Affiliates Inc (NASDAQ:SCAI), TeleTech Holdings, Inc. (NASDAQ:TTEC), and Forward Air Corporation (NASDAQ:FWRD) to get a better sense of its popularity.
Follow Nevro Corp (NYSE:NVRO)
Follow Nevro Corp (NYSE:NVRO)
In the 21st century investor’s toolkit there are several indicators stock market investors employ to appraise publicly traded companies. A couple of the most innovative indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best investment managers can outpace the market by a significant margin (see the details here).
Keeping this in mind, we’re going to take a look at the latest action regarding Nevro Corp (NYSE:NVRO).
What does the smart money think about Nevro Corp (NYSE:NVRO)?
Heading into Q4, a total of 21 of the hedge funds tracked by Insider Monkey held long positions in this stock, an increase of 11% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Kevin Kotler’s Broadfin Capital has the biggest position in Nevro Corp (NYSE:NVRO), worth close to $74.6 million, amounting to 4.2% of its total 13F portfolio. Sitting at the No. 2 spot is Joseph Edelman of Perceptive Advisors, with a $28.2 million position; the fund has 2.3% of its 13F portfolio invested in the stock. Other professional money managers that are bullish contain Steve Cohen’s Point72 Asset Management, Ken Griffin’s Citadel Investment Group and Clifford Fox’s Columbus Circle Investors.
