Why Is The Smart Money So Bullish On Ophthotech Corp (OPHT)?

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As industry-wide interest jumped, key money managers were leading the bulls’ herd. Point72 Asset Management initiated the most valuable position in Ophthotech Corp (NASDAQ:OPHT); Point72 Asset Management had $36.3 million invested in the company at the end of the quarter. Redmile Group also initiated a $23.3 million position during the quarter. The other funds with brand new OPHT positions are Ken Greenberg and David Kim’s Ghost Tree Capital, Charles Clough’s Clough Capital Partners, and Joseph Edelman’s Perceptive Advisors.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Ophthotech Corp (NASDAQ:OPHT) but similarly valued. These stocks are Granite Construction Inc. (NYSE:GVA), Cardtronics, Inc. (NASDAQ:CATM), GATX Corporation (NYSE:GATX), and Taylor Morrison Home Corp (NYSE:TMHC). This group of stocks’ market caps are closest to OPHT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GVA 13 96846 0
CATM 19 61187 5
GATX 11 174818 -1
TMHC 9 14259 1

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was $423 million in OPHT’s case. Cardtronics, Inc. (NASDAQ:CATM) is the most popular stock in this table. On the other hand Taylor Morrison Home Corp (NYSE:TMHC) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Ophthotech Corp (NASDAQ:OPHT) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and ownership soaring, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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