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 Regeneron Pharmaceuticals Inc (NASDAQ:REGN) .
Is Regeneron Pharmaceuticals Inc (NASDAQ:REGN) the right investment to pursue these days? Money managers are categorically in a bearish mood. The number of long hedge fund investments slashed by3 recently. REGNwas in 29 hedge funds’ portfolios at the end of the third quarter of 2016. There were 32 hedge funds in our database with REGN 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 Bank of Montreal (USA) (NYSE:BMO), Netflix, Inc. (NASDAQ:NFLX), and Phillips 66 (NYSE:PSX) to gather more data points.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year, involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.
Now, let’s take a gander at the key action surrounding Regeneron Pharmaceuticals Inc (NASDAQ:REGN).
Hedge fund activity in Regeneron Pharmaceuticals Inc (NASDAQ:REGN)
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, down 9% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in REGN over the last 5 quarters. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, OrbiMed Advisors, led by Samuel Isaly, holds the most valuable position in Regeneron Pharmaceuticals Inc (NASDAQ:REGN). According to its latest 13F filing, the fund has a $142.8 million position in the stock, comprising 1.6% of its 13F portfolio. Coming in second is John Overdeck and David Siegel of Two Sigma Advisors, with a $106.6 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism include D. E. Shaw’s D E Shaw, and Ken Griffin’s Citadel Investment Group. We should note that none of these hedge funds 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.