Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.
SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) has seen an increase in hedge fund interest in recent months. There were 14 hedge funds in our database with SCLN positions at the end of the previous quarter. At the end of this article we will also compare SCLN to other stocks including Triangle Capital Corporation (NYSE:TCAP), United Financial Bancorp, Inc. (NASDAQ:UBNK), and AeroVironment, Inc. (NASDAQ:AVAV) 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.
Keeping this in mind, we’re going to take a gander at the fresh action regarding SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN).
What does the smart money think about SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN)?
At the end of the third quarter, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from the second quarter of 2016. On the other hand, there were a total of 16 hedge funds with a bullish position in SCLN at the beginning of this year. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Nantahala Capital Management, led by Wilmot B. Harkey and Daniel Mack, holds the largest position in SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN). Nantahala Capital Management has a $18.1 million position in the stock, comprising 2.2% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, led by Jim Simons, holding a $14.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish consist of Cliff Asness’s AQR Capital Management, Ernest Chow and Jonathan Howe’s Sensato Capital Management and D. E. Shaw’s D E Shaw. We should note that two of these hedge funds (Nantahala Capital Management and Sensato Capital Management) 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.