Hedge funds and other investment firms that we track, manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by elite investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.
Is Akorn, Inc. (NASDAQ:AKRX) a safe stock to buy now? Investors who are in the know are getting more optimistic. The number of long hedge fund bets inched up by 3 lately. At the end of this article we will also compare AKRX to other stocks, including Cepheid (NASDAQ:CPHD), IDACORP Inc (NYSE:IDA), and Apple Hospitality REIT Inc (NYSE:APLE) to get a better sense of its popularity.
At the moment there are a large number of methods shareholders have at their disposal to value their stock investments. Some of the most underrated methods are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outpace the broader indices by a significant amount (see the details here).
Now, we’re going to take a glance at the fresh action surrounding Akorn, Inc. (NASDAQ:AKRX).
How are hedge funds trading Akorn, Inc. (NASDAQ:AKRX)?
At the end of the third quarter, a total of 43 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 8% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Scott Ferguson’s Sachem Head Capital has the number one position in Akorn, Inc. (NASDAQ:AKRX), worth close to $94.1 million, comprising 4.2% of its total 13F portfolio. Coming in second is Healthcor Management LP, led by Arthur B Cohen and Joseph Healey, holding a $66.3 million position; the fund has 3.7% of its 13F portfolio invested in the stock. Other peers that are bullish contain Mitchell Blutt’s Consonance Capital Management, Israel Englander’s Millennium Management and David Simon’s Twin Capital Management.