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.
GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) was in 19 hedge funds’ portfolios at the end of September. GWPH shareholders have witnessed an increase in activity from the world’s largest hedge funds of late. There were 15 hedge funds in our database with GWPH 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 Columbia Banking System Inc (NASDAQ:COLB), Werner Enterprises, Inc. (NASDAQ:WERN), and Shanda Games Limited(ADR) (NASDAQ:GAME) to gather more data points.
To most traders, hedge funds are assumed to be worthless, old investment vehicles of years past. While there are over 8000 funds trading today, We look at the moguls of this group, around 700 funds. These money managers manage bulk of the hedge fund industry’s total capital, and by keeping an eye on their finest stock picks, Insider Monkey has determined a few investment strategies that have historically surpassed Mr. Market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Keeping this in mind, we’re going to take a look at the latest action regarding GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH).
How have hedgies been trading GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 27% from the second quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Deerfield Management, managed by James E. Flynn, holds the number one position in GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH). Deerfield Management has a $35.7 million position in the stock, comprising 1.4% of its 13F portfolio. Coming in second is OrbiMed Advisors, managed by Samuel Isaly, which holds a $34.5 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that hold long positions consist of Anders Hove and Bong Koh’s VHCP Management and Charles Clough’s Clough Capital Partners.