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ADMA Biologics Inc (ADMA): Does It Stack Up To Its Peers?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on ADMA Biologics Inc (NASDAQ:ADMA).

ADMA Biologics Inc (NASDAQ:ADMA) investors should pay attention to a decrease in enthusiasm from smart money recently. There were 8 hedge funds in our database with ADMA positions at the end of the second quarter, which shrank by 2 during the third quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Harvard Bioscience, Inc. (NASDAQ:HBIO), Xcel Brands Inc (NASDAQ:XELB), and FBR & Co (NASDAQ:FBRC) to gather more data points.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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How have hedgies been trading ADMA Biologics Inc (NASDAQ:ADMA)?

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a 25% drop from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards ADMA over the last 5 quarters, which has been somewhat volatile in 2016. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.


When looking at the institutional investors followed by Insider Monkey, Dennis Purcell’s Aisling Capital has the biggest position in ADMA Biologics Inc (NASDAQ:ADMA), worth close to $26.2 million, amounting to 5.4% of its total 13F portfolio. Sitting at the No. 2 spot is Mitchell Blutt’s Consonance Capital Management, which holds a $9.2 million position. Remaining peers that hold long positions include Kevin Kotler’s Broadfin Capital, Joseph Edelman’s Perceptive Advisors, and Stuart Weisbrod’s Iguana Healthcare Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.

Judging by the fact that ADMA Biologics Inc (NASDAQ:ADMA) has weathered bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few money managers who were dropping their entire stakes last quarter. It’s worth mentioning that Hal Mintz’s Sabby Capital dropped the biggest position of the “upper crust” of funds studied by Insider Monkey, valued at about $0.6 million in stock. Efrem Kamen’s fund, Pura Vida Investments, also dumped its stock, about $0.2 million worth.

Let’s now review hedge fund activity in other stocks similar to ADMA Biologics Inc (NASDAQ:ADMA). We will take a look at Harvard Bioscience, Inc. (NASDAQ:HBIO), Xcel Brands Inc (NASDAQ:XELB), FBR & Co (NASDAQ:FBRC), and Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX). This group of stocks’ market caps resemble ADMA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HBIO 6 6440 -1
XELB 3 9602 -1
FBRC 6 7733 -2
CPRX 5 17616 -1

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $50 million in ADMA’s case. Harvard Bioscience, Inc. (NASDAQ:HBIO) is the most popular stock in this table. On the other hand Xcel Brands Inc (NASDAQ:XELB) is the least popular one with only 3 bullish hedge fund positions. ADMA Biologics Inc (NASDAQ:ADMA) is tied as the most popular stock in this group and has a lot more invested in it than the other stocks. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are pouring money into. In this regard ADMA might be a good candidate to consider taking a long position in.

Disclosure: None

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