The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Foamix Pharmaceuticals Ltd (NASDAQ:FOMX).
Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) was in 18 hedge funds’ portfolios at the end of September. FOMX investors should pay attention to a decrease in hedge fund interest lately, as there were 20 hedge funds in our database with FOMX holdings at the end of the previous quarter. At the end of this article we will also compare FOMX to other stocks including Eagle Bulk Shipping Inc. (NASDAQ:EGLE), PICO Holdings Inc (NASDAQ:PICO), and Ducommun Incorporated (NYSE:DCO) to get a better sense of its popularity.
In the eyes of most investors, hedge funds are viewed as unimportant, outdated financial vehicles of years past. While there are more than 8000 funds in operation at present, Our researchers hone in on the aristocrats of this group, around 700 funds. These hedge fund managers oversee the lion’s share of all hedge funds’ total asset base, and by shadowing their matchless picks, Insider Monkey has revealed numerous investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, let’s check out the key action encompassing Foamix Pharmaceuticals Ltd (NASDAQ:FOMX).
What does the smart money think about Foamix Pharmaceuticals Ltd (NASDAQ:FOMX)?
At the end of the third quarter, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -10% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the most valuable position in Foamix Pharmaceuticals Ltd (NASDAQ:FOMX). Baker Bros. Advisors has a $15 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is James E. Flynn of Deerfield Management, with an $7 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish include Richard Driehaus’s Driehaus Capital, Anand Parekh’s Alyeska Investment Group and Christopher James’s Partner Fund Management.
Due to the fact that Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) has faced falling interest from hedge fund managers, we can see that there is a sect of funds that elected to cut their positions entirely in the third quarter. At the top of the heap, Jacob Gottlieb’s Visium Asset Management dropped the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $7.9 million in stock. Matthew Halbower’s fund, Pentwater Capital Management, also dropped its stock, about $2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 2 funds in the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) but similarly valued. These stocks are Eagle Bulk Shipping Inc. (NASDAQ:EGLE), PICO Holdings Inc (NASDAQ:PICO), Ducommun Incorporated (NYSE:DCO), and Eaton Vance Senior Income Trust (NYSE:EVF). All of these stocks’ market caps are closest to FOMX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EGLE | 5 | 160970 | 1 |
| PICO | 11 | 34940 | 1 |
| DCO | 12 | 14462 | 3 |
| EVF | 4 | 6974 | 1 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $54 million, versus $50 million in FOMX’s case. Ducommun Incorporated (NYSE:DCO) is the most popular stock in this table. On the other hand, Eaton Vance Senior Income Trust (NYSE:EVF) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) is more popular among hedge funds, despite registering a decline in sentiment. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.