The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards TESARO Inc (NASDAQ:TSRO).
TESARO Inc (NASDAQ:TSRO) registered an increase in hedge fund sentiment lately. More specifically, the number of funds from our database bullish on the stock went up to 36 from 28 during the third quarter. At the end of this article we will also compare TSRO to other stocks including Jones Lang LaSalle Inc (NYSE:JLL), Highwoods Properties Inc (NYSE:HIW), and Service Corporation International (NYSE:SCI) to get a better sense of its popularity.
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.
Now, let’s analyze the fresh action regarding TESARO Inc (NASDAQ:TSRO).
What does the smart money think about TESARO Inc (NASDAQ:TSRO)?
Heading into the fourth quarter, 36 funds tracked by Insider Monkey were bullish on TESARO Inc (NASDAQ:TSRO), up by 29% over the quarter. On the other hand, there were a total of 16 hedge funds with a bullish position in TSRO at the beginning of this year. So, let’s find out 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, Joseph Edelman’s Perceptive Advisors has the biggest position in TESARO Inc (NASDAQ:TSRO), worth close to $68.4 million, accounting for 4.4% of its total 13F portfolio. Sitting at the No. 2 spot is Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management, which holds a $62.8 million position; 3.9% of its 13F portfolio is allocated to the company. 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-microcap stocks.
As aggregate interest increased, some big names have been driving this bullishness. Viking Global, led by Andreas Halvorsen, initiated the biggest position in TESARO Inc (NASDAQ:TSRO). Viking Global had $42.4 million invested in the company at the end of the quarter. James E. Flynn’s Deerfield Management also initiated a $24.3 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Steve Cohen’s Point72 Asset Management, and Anand Parekh’s Alyeska Investment Group.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as TESARO Inc (NASDAQ:TSRO) but similarly valued. We will take a look at Jones Lang LaSalle Inc (NYSE:JLL), Highwoods Properties Inc (NYSE:HIW), Service Corporation International (NYSE:SCI), and United Therapeutics Corporation (NASDAQ:UTHR). This group of stocks’ market caps are similar to TSRO’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 22 funds with bullish positions and the average amount invested in these stocks was $637 million, which is higher than the $414 million figure in TSRO’s case. United Therapeutics Corporation (NASDAQ:UTHR) is the most popular stock in this table with 31 funds holding shares. On the other hand Highwoods Properties Inc (NYSE:HIW) is the least popular one with only five bullish hedge fund positions. Compared to these stocks TESARO Inc (NASDAQ:TSRO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.