You probably know from experience that there is not as much information on small-cap companies as there is on large companies. Of course, this makes it really hard and difficult for individual investors to make proper and accurate analysis of certain small-cap companies. However, well-known and successful hedge fund investors like Carl Icahn and George Soros hold the necessary resources and abilities to conduct an extensive stock analysis on small-cap stocks, which enable them to make millions of dollars by identifying potential winners within the small-cap galaxy of stocks. This represents the main reason why Insider Monkey takes notice of the hedge fund activity in these overlooked stocks.
Myokardia Inc (NASDAQ:MYOK) investors should pay attention to an increase in activity from the world’s largest hedge funds in recent months. MYOK was in 15 hedge funds’ portfolios at the end of September. There were 6 hedge funds in our database with MYOK positions at the end of the previous quarter. At the end of this article we will also compare MYOK to other stocks including Barnes & Noble Education Inc (NYSE:BNED), Triton International Limited(NYSE:TRTN), and Ennis, Inc. (NYSE:EBF) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
What have hedge funds been doing with Myokardia Inc (NASDAQ:MYOK)?
At Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 150% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MYOK over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Bihua Chen’s Cormorant Asset Management has the most valuable position in Myokardia Inc (NASDAQ:MYOK), worth close to $26.2 million, corresponding to 2.9% of its total 13F portfolio. On Cormorant Asset Management’s heels is Partner Fund Management, led by Christopher James, which holds a $19.5 million position. Remaining members of the smart money with similar optimism include Joseph Edelman’s Perceptive Advisors, James E. Flynn’s Deerfield Management and Richard Driehaus’ Driehaus Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.