The market has been volatile as the Federal Reserve winds down its easy money policies. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25th and the end of October. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure, and the funds’ movements is one of the reasons why the major indexes have retraced. In this article, we analyze what the smart money thinks of Portola Pharmaceuticals Inc (NASDAQ:PTLA) and find out how it is affected by hedge funds’ moves.
Portola Pharmaceuticals Inc (NASDAQ:PTLA) investors should pay attention to an increase in hedge fund sentiment in recent months. 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 CONSOL Energy Inc. (NYSE:CNX), Cooper Tire & Rubber Company (NYSE:CTB), and Primerica, Inc. (NYSE:PRI) to gather more data points.
At the moment there are many indicators stock market investors can use to appraise publicly traded companies. A duo of the less utilized indicators are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the market by a solid margin (see the details here).
Keeping this in mind, we’re going to review the recent action surrounding Portola Pharmaceuticals Inc (NASDAQ:PTLA).
How have hedgies been trading Portola Pharmaceuticals Inc (NASDAQ:PTLA)?
Heading into Q4, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 8% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Jeremy Green’s Redmile Group has the most valuable position in Portola Pharmaceuticals Inc (NASDAQ:PTLA), worth close to $392 million, accounting for 9% of its total 13F portfolio. Coming in second is Ken Griffin’s Citadel Investment Group, with a $51 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. The remaining members of the smart money with similar optimism contain Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, Israel Englander’s Millennium Management, and Samuel Isaly’s OrbiMed Advisors.