Is InVitae Corp (NVTA) Going to Burn These Hedge Funds?

Between June 25 and October 30 the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of InVitae Corp (NYSE:NVTA) and see how the stock is affected by the recent hedge fund activity.

InVitae Corp (NYSE:NVTA) has experienced a decrease in hedge fund sentiment in recent months. At the end of this article we will also compare NVTA to other stocks, including Garrison Capital Inc (NASDAQ:GARS), Heritage-Crystal Clean, Inc. (NASDAQ:HCCI), and Proteon Therapeutics Inc (NASDAQ:PRTO) to get a better sense of its popularity.

Follow Invitae Corp (NYSE:NVTA)

In the 21st century investor’s toolkit there are tons of indicators investors employ to grade stocks. A pair of the best indicators are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the best picks of the top fund managers can trounce the market by a healthy amount (see the details here).

Keeping this in mind, we’re going to take a peek at the new action regarding InVitae Corp (NYSE:NVTA).

How have hedgies been trading InVitae Corp (NYSE:NVTA)?

At the end of the third quarter, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -18% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the largest position in InVitae Corp (NYSE:NVTA). Baker Bros. Advisors has an $47.3 million position in the stock, comprising 0.4% of its 13F portfolio. Sitting at the No. 2 spot is Stephen DuBois of Camber Capital Management, with an $6.5 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish include Jeremy Green’s Redmile Group, Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management and Samuel Isaly’s OrbiMed Advisors.