Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by elite investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.
Hedge fund interest in Epirus Biopharmaceuticals Inc (NASDAQ:EPRS) shares was flat at the end of last quarter. This is usually a negative indicator. 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 Vermillion, Inc. (NASDAQ:VRML), Digital Turbine Inc (NASDAQ:APPS), and Ocean Shore Holding Co (NASDAQ:OSHC) to gather more data points.
If you’d ask most market participants, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are over 8000 funds trading at present, We look at the crème de la crème of this group, around 700 funds. Most estimates calculate that this group of people orchestrate the majority of the smart money’s total capital, and by shadowing their inimitable picks, Insider Monkey has formulated various investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, let’s take a gander at the new action surrounding Epirus Biopharmaceuticals Inc (NASDAQ:EPRS).
How have hedgies been trading Epirus Biopharmaceuticals Inc (NASDAQ:EPRS)?
Heading into Q4, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, flat from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Mitchell Blutt’s Consonance Capital Management has the number one position in Epirus Biopharmaceuticals Inc (NASDAQ:EPRS), worth close to $10.3 million, corresponding to 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is Camber Capital Management, managed by Stephen DuBois, which holds a $8.2 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish consist of Bihua Chen’s Cormorant Asset Management, Kevin Kotler’s Broadfin Capital, and Phill Gross and Robert Atchinson’s Adage Capital Management.