Before we spend many hours researching a company, we’d like to analyze what insiders, hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Quotient Limited (NASDAQ:QTNT).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Let’s take a look at the recent hedge fund action encompassing Quotient Limited (NASDAQ:QTNT).
What does the smart money think about Quotient Limited (NASDAQ:QTNT)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 12% from the previous quarter. The graph below displays the number of hedge funds with bullish position in QTNT over the last 13 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Perceptive Advisors was the largest shareholder of Quotient Limited (NASDAQ:QTNT), with a stake worth $66.4 million reported as of the end of September. Trailing Perceptive Advisors was Polar Capital, which amassed a stake valued at $40.3 million. Cormorant Asset Management, Highbridge Capital Management, and Broadfin Capital were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Quotient Limited (NASDAQ:QTNT) headfirst. Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, established the largest position in Quotient Limited (NASDAQ:QTNT). Sectoral Asset Management had $0.1 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0.1 million investment in the stock during the quarter. The only other fund with a brand new QTNT position is Andrew Weiss’s Weiss Asset Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Quotient Limited (NASDAQ:QTNT) but similarly valued. We will take a look at Tile Shop Hldgs, Inc. (NASDAQ:TTS), Adverum Biotechnologies, Inc. (NASDAQ:ADVM), Assertio Therapeutics, Inc. (NASDAQ:ASRT), and Gladstone Investment Corporation (NASDAQ:GAIN). This group of stocks’ market caps are similar to QTNT’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $52 million. That figure was $186 million in QTNT’s case. Adverum Biotechnologies, Inc. (NASDAQ:ADVM) is the most popular stock in this table. On the other hand Gladstone Investment Corporation (NASDAQ:GAIN) is the least popular one with only 6 bullish hedge fund positions. Quotient Limited (NASDAQ:QTNT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ADVM might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.