It is already common knowledge that individual investors do not usually have the necessary resources and abilities to properly research an investment opportunity. As a result, most investors pick their illusory “winners” by making a superficial analysis and research that leads to poor performance on aggregate. The Standard and Poor’s 500 Index returned 7.6% over the 12-month period ending November 21, while more than 51% of the constituents of the index underperformed the benchmark. Hence, a random stock picking process will most likely lead to disappointment. At the same time, the 30 most favored mid-cap stocks by the best performing hedge funds monitored by Insider Monkey generated a return of 18% over the same time span. Of course, hedge funds do make wrong bets on some occasions and these get disproportionately publicized on financial media, but piggybacking their moves can beat the broader market on average. That’s why we are going to go over recent hedge fund activity in Champions Oncology Inc (NASDAQ:CSBR).
Is Champions Oncology Inc (NASDAQ:CSBR) the right pick for your portfolio? Prominent investors are definitely in an optimistic mood. The number of long hedge fund positions that are disclosed in regulatory 13F filings advanced by 3 lately. In this way, there were 7 hedge funds in our database with CSBR positions at the end of the last quarter. At the end of this article we will also compare CSBR to other stocks including Violin Memory Inc (NYSE:VMEM), Tonix Pharmaceuticals Holding Corp. (NASDAQ:TNXP), and Cinedigm Digital Cinema Corp (NASDAQ:CIDM) 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.
What does the smart money think about Champions Oncology Inc (NASDAQ:CSBR)?
At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a jump of 75% from the previous quarter. The graph below displays the number of hedge funds with bullish position in CSBR over the last 5 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Sabby Capital, led by Hal Mintz, holds the number one position in Champions Oncology Inc (NASDAQ:CSBR). Sabby Capital has a $0.9 million position in the stock. Coming in second is Paul Reeder and Edward Shapiro of PAR Capital Management, with a $0.6 million position. Remaining hedge funds and institutional investors that hold long positions comprise Joseph Edelman’s Perceptive Advisors, Fred Knoll’s Knoll Capital Management and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners. We should note that GRT Capital Partners is 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.