The markets are relatively calm today as traders await Thursday’s release of the latest jobless claims and GDP figures.
In this article, we’ll analyze why Origin Agritech Ltd. (NASDAQ:SEED), Galectin Therapeutics Inc (NASDAQ:GALT), Avis Budget Group Inc. (NASDAQ:CAR), Hertz Global Holdings, Inc (NYSE:HTZ), and Cintas Corporation (NASDAQ:CTAS) are trending this morning and use the latest SEC filings to see how successful hedge funds have been trading these stocks.
Our backtests that covered the period between 1999 and 2012 showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).
Origin Agritech Ltd. (NASDAQ:SEED) shares have soared by 21% in morning trading after the company entered into a definitive agreement to sell its China-based commercial corn seed distribution and production business for RMB400 million, or around $60 million, to Beijing Shihui Agricultural Development Co, Ltd. In addition, the acquirer will enter into a separate license agreement to pay Origin a royalty stream for its present and future product portfolio as well as a technology access fee for various R&D. The transaction is expected to close in the first quarter of 2017. Given its nano-cap nature, none of the 749 funds that we track which filed 13Fs for the latest reporting period held shares of Origin Agritech Ltd. (NASDAQ:SEED).
Galectin Therapeutics Inc (NASDAQ:GALT) shares have plunged by over 41% after the company reported disappointing top-line results from NASH-FX, a Phase 2a clinical trial evaluating the efficacy and safety of GR-MD-02 in 30 nonalcoholic steatohepatitis patients with advanced fibrosis. According to the company, the study did not meet its primary biomarker endpoint, nor did it meet the secondary endpoints that measure liver stiffness as a surrogate for fibrosis. To support the funding of another NASH trial, NASH-CX, the company has closed private placement financing for $1.5 million. As per our database, three funds that we follow owned shares of Galectin Therapeutics Inc (NASDAQ:GALT) at the end of June, up by one quarter-over-quarter.
On the next page, we’ll take a closer look at why Avis Budget Group, Hertz, and Cintas Corporation are in the spotlight.