Here’s Why These Five Stocks Are Trending Today

The US stock market is slightly up on Tuesday. While still up for the day, major indexes traded lower than in the morning, responding to Janet Yellen’s statement that the Federal Reserve would be cautious with interest rate hikes, given the current backdrop of uncertainty around the Brexit and the slowdown in the US job market.

Among the stocks posting large moves on Tuesday are IsoRay, Inc. (NYSEMKT:ISR), Kirby Corporation (NYSE:KEX), Bristow Group Inc (NYSE:BRS), Rex Energy Corporation (NASDAQ:REXX) and Twitter Inc (NYSE:TWTR). So, let’s take a look into the events behind the move of these stocks, and into what the hedge funds in our database think about the companies in question.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).

IsoRay Helped By Promising Results In Brain Tumors

Let’s start with IsoRay, Inc. (NYSEMKT:ISR), which has gained about 16% on Tuesday, driven by the announcement of positive results of its “Prospective trial of surgery and permanent intraoperative brachytherapy (S+BT) using a modular, biocompatible radiation implant for recurrent aggressive meningiomas,” at the Society of Neuro-Oncology Conference. The study in question assessed a new delivery method of Cesium-131 brachytherapy for patients with brain tumors. As most nano caps, IsoRay, Inc. (NYSEMKT:ISR) does not count on much hedge fund support. Out of the funds that we track, only Ken Griffin’s Citadel Investment Group disclosed a long position in the company as of the end of the first quarter. Over the period, the firm started a new position in the stock, comprising 104,184 shares, valued at $94,000 at the end of March.

Kirby Gets Hit By Credit Suisse Downgrade

Next up is Kirby Corporation (NYSE:KEX), which has tumbled by more than 5% today, following a downgrade from Credit Suisse. The research firm cut the domestic tank barge operator to ‘Neutral’ from ‘Outperform’, citing decelerating volumes and the potential for weakness in the company’s coastal business. Credit Suisse has set a $60 price target for the stock. During the first quarter, Kirby Corporation (NYSE:KEX) saw the number of funds in our database long its stock decline by 31% to 20. Among those who closed out their stakes some time between January and March, was Phill Gross and Robert Atchinson’s Adage Capital Management, which held 234,946 shares at the end of 2015.

On the next page we will look into three more stocks posting big moves on Tuesday.

Rescue Helicopters On The Way

Shares of Bristow Group Inc (NYSE:BRS) are trading down by almost 6% on Tuesday afternoon amid news about the company launching a new helicopter rescue and recovery service for the oil and gas industry in Nigeria. The helicopter business said the new service will debut in August of 2016, and will cover necessities that have not been attended in the country so far. “This new rescue and recovery service is a natural extension of our business transporting personnel offshore that we’ve provided in Nigeria for more than 50 years, and demonstrates our continued long-term commitment to the country,” said Interim Regional Director Africa Captain Akin Oni. At the end of the first quarter, Bristow Group Inc (NYSE:BRS) counted 10 funds long the stock among those that we track, holding more than 30% of its total shares outstanding. The largest stake was held by John W. Rogers’ Ariel Investments, which last disclosed ownership of 9.8 million shares, or $185 million in stock. Also bullish seemed Citadel Investment Group, which boosted its exposure to the company by 153% over the first quarter, holding 255,890 shares at the end of March.

Rex Energy Tumbles Despite Good News

Also slipping on Tuesday trading is Rex Energy Corporation (NASDAQ:REXX), which has lost more than 4% since the opening bell, even though the company announced this morning that it had attained an additional capital commitment from Benefit Street Partners, its partner for the Moraine East joint development program. Another piece of news that could not help the stock was the announcement of a privately negotiated asset sale, which could cap liquidity concerns.

Micro-cap Rex Energy Corporation (NASDAQ:REXX) saw the number of funds in our database long its stock double over the first quarter to four. Newcomers included D. E. Shaw, which acquired 2.45 million shares over the period, and George Soros’ Soros Fund Management, which purchased 165,000 shares.

Twitter Announced Rule Changes

Finally, there’s Twitter Inc (NYSE:TWTR), which is in the spotlight after the company said it is increasing the length of its video play from 30 seconds to 140 seconds. A total of 27 funds in our database are long Twitter Inc (NYSE:TWTR) as of the end of March, down by 10% quarter-over-quarter. Once again, D. E. Shaw was among notable investors, holding more than 6 million shares, or almost $100 million in stock at the end of the first quarter.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.