Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX).
WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX) was in 22 hedge funds’ portfolios at the end of the third quarter of 2015. WX has experienced an increase in hedge fund interest in recent months. There were 21 hedge funds in our database with WX holdings at the end of the previous 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 MPLX LP (NYSE:MPLX), American Eagle Outfitters (NYSE:AEO), and Industrias Bachoco, S.A.B. de C.V. (ADR) (NYSE:IBA) to gather more data points.
Keeping this in mind, let’s take a peek at the fresh action encompassing WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX).
What have hedge funds been doing with WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX)?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 5% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Frank Brosens’s Taconic Capital has the biggest position in WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX), worth close to $92.9 million, comprising 3.4% of its total 13F portfolio. Coming in second is OZ Management, led by Daniel S. Och, holding a $74 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism contain Robert Emil Zoellner’s Alpine Associates, Thomas Steyer’s Farallon Capital and Lei Zhang’s Hillhouse Capital Management.