It’s a little-known fact that stock performance is not evenly distributed (i.e. you don’t have a 50/50 chance of picking a market-beating stock). In fact, despite the S&P 500 gaining about 5.2% between November 1, 2014 and October 30, 2015, less than 49% of the stocks in the index beat the market during that time. In contrast, the 30 stocks from the index which were the most popular among the investors that we track returned 9.5% during that time and 63% of them beat the market. This shows that while hedge funds get a lot of flak from the mainstream media for their performance, it can be rewarding to follow their moves using the right sets of data. Even then, there is never a fool proof strategy to generating returns, as even the collective wisdom of top hedge funds gets it wrong some times, as in the case of some of their top picks from the index like Micron and Anadarko. The data though, shows that following the collective wisdom of select hedge funds can be a very wise move overall.
Is Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) ready to rally soon? Investors who are in the know are taking a bearish view. The number of bullish hedge fund positions were cut by 2 lately. MNTA was in 17 hedge funds’ portfolios at the end of September. There were 19 hedge funds in our database with MNTA holdings 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 Cubic Corporation (NYSE:CUB), Adeptus Health Inc (NYSE:ADPT), and Select Comfort Corp. (NASDAQ:SCSS) to gather more data points.
Keeping this in mind, we’re going to take a look at the fresh action regarding Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA).
Hedge fund activity in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -11% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Visium Asset Management, managed by Jacob Gottlieb, holds the largest position in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). Visium Asset Management has a $88.6 million position in the stock, comprising 1.2% of its 13F portfolio. Coming in second is Discovery Capital Management, led by Rob Citrone, holding a $75.5 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish include D E Shaw, William Leland Edwards’ Palo Alto Investors and Israel Englander’s Millennium Management.