We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).
Technical Selling Causes AMD to Retreat
Although Advanced Micro Devices, Inc. (NASDAQ:AMD) CEO Lisa Su expects the company to be profitable on an operating basis for the second half of 2016, shares of the company are nevertheless down by 7.22% today as traders take profit on the stock run-up. AMD shares have more than doubled from their February lows, and shares might need to consolidate a bit before the stock can find a stronger technical footing. Billionaire Jim Simons’ Renaissance Technologies owned almost 800,000 shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of March.
Sarepta Therapeutics Down on FDA Press Release
Sarepta Therapeutics Inc (NASDAQ:SRPT) is 19% lower after the FDA published a press release stating that it had completed its push to streamline the process used by doctors to request expanded access to investigational drugs for their patients. Some traders evidently thought the timing of the FDA press release concerning the agency’s finished efforts might increase the chance that the agency won’t approve eteplirsen, Sarepta’s lead candidate for the treatment of Duchenne muscular dystrophy. Some profit taking could also be another reason for today’s decline. Sarepta Therapeutics Inc (NASDAQ:SRPT) shares will likely continue to be volatile until the FDA makes a final decision on the drug. A total of 19 elite funds tracked by Insider Monkey owned around 1/3 of the company at the end of the first quarter.
On the next page, we examine Titan Pharmaceuticals, Hovnanian Enterprises, and DeVry Education Group.