At Insider Monkey we follow around 730 hedge funds and other institutional investors and ahead of the New Year, several funds from our database have reported some interesting moves. In this article, we are going to take a closer look at a new position that has just been disclosed by Steve Cohen‘s Point72 Asset Management, as well as two bullish moves reported by Abrams Capital Management and HealthCor Management.
Why do we follow these investors? We have determined that imitating some of the picks that they are collectively bullish on, can help us achieve market-beating returns over the long-term. The key is to focus on the favorite small-cap stocks of these funds. Our strategy involves identifying the top 15 small-cap companies that the funds from our database are collectively fond of and since August 2012 this approach has generated gains of around 102%, outperforming the S&P 500 ETF (SPY) by some 53 percentage points (see more details here).
Without any further ado, let’s start with Chimerix Inc (NASDAQ:CMRX), which represents the new position in the equity portfolio of Steven Cohen’s Point72 Asset Management. Cohen is known for making many successful bets, which is why his moves are almost always scrutinized. In this case, it’s particularly interesting, since Chimerix Inc (NASDAQ:CMRX)’s stock has lost more than 80% of its value on Monday, following the disclosure of poor results from the Phase 3 trial of brincidofovir in the prevention of cytomegalovirus in patients that went through hematopoietic stem cell transplants. Nevertheless, the company said that it remains optimistic about the product and believes that it has potential. According to a new 13G filing, Point72 Asset Management has initiated a 5.3% stake that contains 2.45 million shares and today the stock is up by nearly 15% on the back of the news. Following the report, most analysts covering Chimerix Inc (NASDAQ:CMRX) downgraded the stock, but none of them rated the stock as a ‘Sell’ and the price target cuts still indicate some considerable upside potential. Healthcare-focused fund Samuel Isaly’s OrbiMed Advisors was also bullish on Chimerix at the end of September, disclosing 1.02 million shares in its last 13F filing.
On the following page, we are going to take a closer look at the bullish moves reported by the other two funds that have been mentioned earlier.