At a time when all three indices are in the green after the Fed concluded a two-day meeting without changing interest rates -as expected- and projecting fewer rate increases in the coming months (two increases are expected in the course of 2016), amid uncertainty regarding the global economy. However, the Fed’s warning that global economic and financial developments continue to pose risks to the US, woke warning lights on the markets. However, there are several stocks that are well in the green today, including Vitae Pharmaceuticals Inc (NASDAQ:VTAE), Advanced Micro Devices, Inc. (NASDAQ:AMD), Office Depot Inc (NASDAQ:ODP), Rofin-Sinar Technologies (NASDAQ:RSTI), and Amira Nature Foods Ltd (NYSE:ANFI). In the following article, let’s take a closer look at why investors are buying these stocks and examine the latest hedge fund activity surrounding them.
While there are many metrics that investors can assess in the investment process, hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).
Back to Thursday’s gainers, we’ve got Vitae Pharmaceuticals Inc (NASDAQ:VTAE), whose stock has opened nearly 80% higher after the company announced positive results from tests of its experimental medication for psoriasis. Specifically, the Phase 2a “proof-of-concept clinical trial” gained positive top-line results in testing an oral medication that can potentially treat multiple autoimmune diseases, such as psoriasis. The trial examined the efficacy, safety and tolerability of multiple doses, and the positive test results validate VTP-43742 for the treatment of psoriasis. Those psoriasis patients received multiple doses in one month and those who received 350-milligram dosages registered a 24% reduction of their psoriasis about a placebo, while those who got the double of the doses, experimented a 30% drop. Moreover, Stifel has upgraded the stock to ‘Buy’ and set a price target of $15.
Of the 785 elite funds that we track, 18 funds reported long positions in Vitae Pharmaceuticals’ shares as of the end of December, amassing 37.0% of the float. Among the bullish investors is Phil Gross and Robert Atchinson‘s Adage Capital Partners, with a holding of 2.15 million shares.
Advanced Micro Devices, Inc. (NASDAQ:AMD)‘s shares has inched up by 1.5% after Bloomberg reported that Intel Corporation (NASDAQ:INTC) may license graphics technology from it. On the other hand, NVIDIA Corporation (NASDAQ:NVDA) which already is on that business, and licenses graphics to Intel is losing ground in mid-day trading.
Dmitry Balyasny’s Balyasny Asset Management was the largest shareholder with 12.60 million shares, valued at $36.15 million at the end of December.