The U.S stock indexes hit record highs on Monday, helped by Bank of America Corp (NYSE:BAC)’s better than expected financial results and some M&A activity in the tech sector. However, not every stock has been bouyed by the strong push in the last couple weeks, as they have not only moved in the opposite direction, but also fallen to their 52-week lows.
In this article we’ll take a look at five such stocks, TG Therapeutics Inc (NASDAQ:TGTX), NantHealth Inc (NASDAQ:NH), xG Technology Inc (NASDAQ:XGTI), Amedica Corporation (NASDAQ:AMDA), and DryShips Inc. (NASDAQ:DRYS), and study their performance. We’ll also look into how the hedge funds in our database have been trading these companies of late and whether or not they have seen the declines coming.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. 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 more details here).
Let’s start with TG Therapeutics Inc (NASDAQ:TGTX), which hit a low of $5.61 on Monday, on what seemed like no particular news. The shares recuperated toward the end of the day, closing below $6.00, but slid by another 5.22% on Tuesday, to close back near that yearly low at $5.63. The stock has been extremely volatile this year, and has lost more than 52% so far.
Despite the feebleness, a few funds in our database are still betting on TG Therapeutics Inc (NASDAQ:TGTX). As of the end of the first quarter, nine funds among those we track were long the stock, holding almost 25% of the company’s float. Among them was Peter Kolchinsky’s RA Capital Management, which boosted its exposure to the small-cap biotech by 62% over the first quarter to more than 4.5 million shares.
Next up is NantHealth Inc (NASDAQ:NH), which traded at 52-week lows on Monday and Tuesday, sliding to a price of $11.28, which also pushed its year-to-date loss to 38.46%. Again, no particular news seem to be driving the decline in the small-cap, which started trading on the Nasdaq exchange on June 3, and has since received ‘Buy’ (or equivalent) ratings from Canaccord Genuity, First Analysis, and Cowen and Company. Given its recent entry into the stock market, there are no known shareholders of NantHealth Inc (NASDAQ:NH) in our database at this time.
We’ll check out three other Nasdaq stocks that have hit their 52-week lows this week on the next page.