At Insider Monkey, we track over 700 of the top hedge funds in the world, following and reporting on their latest moves disclosed through filings with the Securities and Exchange Commission on a daily basis. In this article we will cover three recent filings, involving three different funds and three different companies. Therefore, in the filings, Alex Denner’s Sarissa Capital, Glenn J. Krevlin’s (pictured) Glenhill Advisors, and Wayne Holman’s Ridgeback Capital Management. The companies in question are a trio of firms operating in the health sector, Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), Joint Corp (NASDAQ:JYNT), and Trillium Therapeutics Inc. (NASDAQ:TRIL).
However, we don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testsing August, 2012, the strategy worked splendidly, outperforming the market every year and returning 132% through March 11, which is by 79 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).
We’ll start with Sarissa Capital and Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR). A recent filing detailed an agreement between the investor and the company, which involves the appointment of a new independent director to Aegerion’s Board of Directors, increasing its total membership to eight members. The agreement also allows Sarissa to appoint an additional class II director to the board at any time between January 2016 and two days following the company’s 2016 Annual Meeting of shareholders.
The deal and participation on the board are contingent upon Sarissa maintaining ownership of at least 1.20 million shares of Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR). Sarissa reported ownership of 1.64 million shares in a filing in early February, which was a new position for the activist fund and amounted to 5.76% of the company’s common stock. Matt Sirovich and Jeremy Mindich’s Scopia Capital is the largest shareholder among the funds we track, owning 5.35 million shares. Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR)’s stock has collapsed by nearly 75% from their peak in late 2013 and are down 26% over the past six months. The brunt of that loss occurred on October 31 after a weak earnings report and reduced full-year guidance crippled shares by 40%.