Great Basin Scientific Inc (GBSN)’s Shares Surge After Commercial Launch of Group B Strep Test; Will Hedge Funds Finally Buy In?

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Great Basin Scientific Inc (NASDAQ:GBSN) has had a spectacular run in 2015, with shares growing by 33.52% year-to-date. Unfortunately for hedge funds, they have had little part of it, as only Ken Griffin’s Citadel Investment had a stake in the company of the funds we track, and a miniscule one at that, of just under 12,000 shares valued at $47,000; literally a drop in the ocean of the fund’s greater than $104 billion public equity portfolio. As for the insider activity at the company, insiders at Great Basin Scientific have not made any transactions in the past six months.

Why are we interested in the 13F filings of a select group of hedge funds? We use these filings to determine the top 15 small-cap stocks held by these elite funds based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole. These small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012. Moreover, since the beginning of forward testing from August 2012, the strategy worked just as our research predicted, outperforming the market every year and returning 135% over the last 32 months, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

In case of companies associated with the healthcare industry, a single drug approval and diagnostic method could help them gain necessary momentum. In light of the recent commercial launch of Great Basin Scientific Inc (NASDAQ:GBSN)’s GBS test, we recommend a buy for the shares of the company.

Disclosure: None

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