Before putting in our own effort and resources into finding a good investment, we can quickly utilize hedge fund expertise to give us a quick glimpse of whether that stock could make for a good addition to our portfolios. The odds are not exactly stacked in investors’ favor when it comes to beating the market, as evidenced by the fact that less than 49% of the stocks in the S&P 500 did so during the 12-month period ending October 30. However, 63% of hedge funds’ top 30 stock picks from the index did beat the market, and returned nearly twice as much on average as the index. Thus, we can see that the tireless research and efforts of hedge funds to identify winning stocks can work to our advantage when we know how to use the data. While not all of their picks will be winners, our odds are much better following their best stock picks than trying to go it alone.
Is Prothena Corporation PLC (NASDAQ:PRTA) the right investment to pursue these days? Investors who are in the know are becoming hopeful. The number of long hedge fund bets moved up by 3 lately. PRTA was in 19 hedge funds’ portfolios at the end of the third quarter of 2015. There were 16 hedge funds in our database with PRTA holdings at the end of the previous quarter. At the end of this article we will also compare PRTA to other stocks including Third Point Reinsurance Ltd (NYSE:TPRE), Avon Products, Inc. (NYSE:AVP), and Flow International Corporation (NASDAQ:FLOW) to get a better sense of its popularity.
Keeping this in mind, we’re going to take a glance at the latest action surrounding Prothena Corporation PLC (NASDAQ:PRTA).
Hedge fund activity in Prothena Corporation PLC (NASDAQ:PRTA)
At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from the second quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Neil Woodford’s Woodford Investment Management has the biggest position in Prothena Corporation PLC (NASDAQ:PRTA), worth close to $281.2 million, amounting to 16.2% of its total 13F portfolio. Coming in second is Visium Asset Management, managed by Jacob Gottlieb, which holds a $43.5 million position; 0.6% of its 13F portfolio is allocated to the company. Other professional money managers that are bullish contain Ken Griffin’s Citadel Investment Group, William Leland Edwards’ Palo Alto Investors, and Israel Englander’s Millennium Management.