Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards vTv Therapeutics Inc (NASDAQ:VTVT).
Is vTv Therapeutics Inc (NASDAQ:VTVT) the right pick for your portfolio? Investors who are in the know are becoming hopeful. The number of long hedge fund bets stayed at 6 at the end of September. Considering that the stock started trading in the last quarter only, it might be difficult to understand the hedge fund sentiment. In terms of stock performance, vTv Therapeutics Inc (NASDAQ:VTVT) dropped 40.13% throughout the third quarter.
For a better understanding of investors’ outlook, we will compare vTv Therapeutics Inc (NASDAQ:VTVT) to other stocks, including CAI International Inc (NYSE:CAI), New Home Company Inc (NYSE:NWHM), and Trupanion Inc (NYSE:TRUP) to get a better sense of its popularity.
Today, there are numerous methods market participants have at their disposal to appraise publicly traded companies. Two of the most useful methods are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the elite money managers can outclass the S&P 500 by a healthy amount (see the details here).
With all of this in mind, let’s view the latest action regarding vTv Therapeutics Inc (NASDAQ:VTVT).
What have hedge funds been doing with vTv Therapeutics Inc (NASDAQ:VTVT)?
Heading into Q4, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Farallon Capital has the biggest position in vTv Therapeutics Inc (NASDAQ:VTVT), worth close to $1.6 million, comprising less than 0.1% of its total 13F portfolio. Coming in second is Sabby Capital, led by Hal Mintz, holding a $1 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money that are bullish comprise Anand Parekh’s Alyeska Investment Group, Nathan Fischel’s DAFNA Capital Management, and Israel Englander’s Millennium Management.