Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Cancer Genetics Inc (NASDAQ:CGIX) based on that data.
Is Cancer Genetics Inc (NASDAQ:CGIX) a buy, sell, or hold? Hedge funds are taking a pessimistic view. The number of bullish hedge fund positions retreated by 1 recently. CGIX was in 4 hedge funds’ portfolios at the end of September. There were 5 hedge funds in our database with CGIX 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 Petroquest Energy Inc (NYSE:PQ), Timberland Bancorp, Inc. (NASDAQ:TSBK), and Good Times Restaurants Inc. (NASDAQ:GTIM) to gather more data points.
To most shareholders, hedge funds are seen as unimportant, old investment vehicles of years past. While there are more than 8000 funds with their doors open at the moment, Our experts look at the crème de la crème of this club, around 700 funds. These money managers oversee the majority of the hedge fund industry’s total capital, and by following their finest picks, Insider Monkey has unearthed various investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, we’re going to analyze the key action surrounding Cancer Genetics Inc (NASDAQ:CGIX).
What does the smart money think about Cancer Genetics Inc (NASDAQ:CGIX)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of -20% from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Jim Simons’ Renaissance Technologies has the number one position in Cancer Genetics Inc (NASDAQ:CGIX), worth close to $0.6 million, corresponding to less than 0.1%% of its total 13F portfolio. On Renaissance Technologies’s heels is Mark N. Diker’s Diker Management, with a $0.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other professional money managers with similar optimism comprise Chuck Royce’s Royce & Associates and Philip Hempleman’s Ardsley Partners.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified CGIX as a viable investment and initiated a position in the stock.
Let’s now review hedge fund activity in other stocks similar to Cancer Genetics Inc (NASDAQ:CGIX). These stocks are Petroquest Energy Inc (NYSE:PQ), Timberland Bancorp, Inc. (NASDAQ:TSBK), Good Times Restaurants Inc. (NASDAQ:GTIM), and Biota Pharmaceuticals Inc (NASDAQ:BOTA). This group of stocks’ market values resemble CGIX’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was just $1 million in CGIX’s case. Petroquest Energy Inc (NYSE:PQ) is the most popular stock in this table, while Timberland Bancorp, Inc. (NASDAQ:TSBK) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Cancer Genetics Inc (NASDAQ:CGIX) is even less popular than TSBK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.