The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Seres Therapeutics Inc (NASDAQ:MCRB) .
Seres Therapeutics Inc (NASDAQ:MCRB) was in 13 hedge funds’ portfolios at the end of the third quarter of 2016. MCRB has experienced a decrease in hedge fund interest recently. There were 17 hedge funds in our database with MCRB positions 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 NN, Inc. (NASDAQ:NNBR), First Financial Corp (NASDAQ:THFF), and Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) to gather more data points.
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.
Now, let’s go over the fresh action surrounding Seres Therapeutics Inc (NASDAQ:MCRB).
How have hedgies been trading Seres Therapeutics Inc (NASDAQ:MCRB)?
At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 24% from one quarter earlier. By comparison, 8 hedge funds held shares or bullish call options in MCRB heading into this year. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, David E. Shaw’s D E Shaw has the number one position in Seres Therapeutics Inc (NASDAQ:MCRB), worth close to $6.5 million, accounting for less than 0.1% of its total 13F portfolio. The second most bullish fund is Jim Simons’ Renaissance Technologies, with a $3.6 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other professional money managers that are bullish comprise George McCabe’s Portolan Capital Management, Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management and Michael Hintze’s CQS Cayman LP. 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.