Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets, hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Medgenics Inc (NYSEMKT:MDGN).
Medgenics Inc (NYSEMKT:MDGN) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 7 hedge funds’ portfolios at the end of the third quarter of 2015. At the end of this article we will also compare MDGN to other stocks, including JAKKS Pacific, Inc. (NASDAQ:JAKK), Calamos Asset Management, Inc (NASDAQ:CLMS), and Medley Management Inc (NYSE:MDLY) to get a better sense of its popularity.
Today there are a multitude of gauges stock traders use to grade stocks. A couple of the most under-the-radar gauges are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best money managers can trounce their index-focused peers by a solid amount (see the details here).
Keeping this in mind, let’s go over the fresh action regarding Medgenics Inc (NYSEMKT:MDGN).
Hedge fund activity in Medgenics Inc (NYSEMKT:MDGN)
At Q3’s end, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Kevin Kotler’s Broadfin Capital has the biggest position in Medgenics Inc (NYSEMKT:MDGN), worth close to $12.1 million, accounting for 0.7% of its total 13F portfolio. The second most bullish fund manager is Opaleye Management, managed by James A. Silverman, which holds an $8.3 million position; 4.1% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that hold long positions contain Hal Mintz’s Sabby Capital, Daniel Gold’s QVT Financial and Anand Parekh’s Alyeska Investment Group.