The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards OncoMed Pharmaceuticals Inc (NASDAQ:OMED).
OncoMed Pharmaceuticals Inc (NASDAQ:OMED) shareholders have witnessed an increase in enthusiasm from smart money lately. OMED was in 10 hedge funds’ portfolios at the end of September. There were 8 hedge funds in our database with OMED positions at the end of the previous quarter. At the end of this article we will also compare OMED to other stocks, including Superior Industries International Inc. (NYSE:SUP), NN, Inc. (NASDAQ:NNBR), and Double Eagle Acqusition Corp (NASDAQ:EAGL) to get a better sense of its popularity.
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Now, let’s take a gander at the recent action encompassing OncoMed Pharmaceuticals Inc (NASDAQ:OMED).
How are hedge funds trading OncoMed Pharmaceuticals Inc (NASDAQ:OMED)?
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Mark Lampert’s Biotechnology Value Fund / BVF Inc has the largest position in OncoMed Pharmaceuticals Inc (NASDAQ:OMED), worth close to $22.8 million, accounting for 4.6% of its total 13F portfolio. The second most bullish fund manager is Sanford J. Colen of Apex Capital, with a $6.6 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism comprise Anand Parekh’s Alyeska Investment Group, Stuart Weisbrod’s Iguana Healthcare Management and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, key hedge funds have jumped into OncoMed Pharmaceuticals Inc (NASDAQ:OMED) headfirst. Millennium Management, managed by Israel Englander, initiated the most outsized position in OncoMed Pharmaceuticals Inc (NASDAQ:OMED). Millennium Management had $2 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $1.2 million position during the quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as OncoMed Pharmaceuticals Inc (NASDAQ:OMED) but similarly valued. These stocks are Superior Industries International Inc. (NYSE:SUP), NN, Inc. (NASDAQ:NNBR), Double Eagle Acqusition Corp (NASDAQ:EAGL), and Xencor Inc (NASDAQ:XNCR). This group of stocks’ market valuations are closest to OMED’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SUP | 12 | 58327 | 5 |
| NNBR | 17 | 59314 | 2 |
| EAGL | 21 | 188341 | 21 |
| XNCR | 19 | 91690 | 3 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $99 million, versus $42 million in OMED’s case. Double Eagle Acqusition Corp (NASDAQ:EAGL) is the most popular stock in this table, while Superior Industries International Inc. (NYSE:SUP) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks OncoMed Pharmaceuticals Inc (NASDAQ:OMED) is even less popular than SUP. 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.