A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended December 31, so let’s proceed with the discussion of the hedge fund sentiment on Osiris Therapeutics, Inc. (NASDAQ:OSIR).
Osiris Therapeutics, Inc. (NASDAQ:OSIR) has experienced an increase in support from the world’s most elite money managers lately. OSIR was in 8 hedge funds’ portfolios at the end of the fourth quarter of 2018. There were 4 hedge funds in our database with OSIR positions at the end of the previous quarter. Our calculations also showed that OSIR isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 32 percentage points since May 2014 through March 12, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 27.5% through March 12, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We’re going to view the new hedge fund action surrounding Osiris Therapeutics, Inc. (NASDAQ:OSIR).
How are hedge funds trading Osiris Therapeutics, Inc. (NASDAQ:OSIR)?
Heading into the first quarter of 2019, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 100% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in OSIR over the last 14 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
More specifically, Cloverdale Capital Management was the largest shareholder of Osiris Therapeutics, Inc. (NASDAQ:OSIR), with a stake worth $8.1 million reported as of the end of December. Trailing Cloverdale Capital Management was GAMCO Investors, which amassed a stake valued at $0.9 million. Renaissance Technologies, Millennium Management, and Horizon Asset Management were also very fond of the stock, giving the stock large weights in their portfolios.
As aggregate interest increased, key money managers were breaking ground themselves. Cloverdale Capital Management, managed by C. Jonathan Gattman, assembled the largest position in Osiris Therapeutics, Inc. (NASDAQ:OSIR). Cloverdale Capital Management had $8.1 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also made a $0.2 million investment in the stock during the quarter. The other funds with brand new OSIR positions are Michael Platt and William Reeves’s BlueCrest Capital Mgmt. and Karim Abbadi and Edward McBride’s Centiva Capital.
Let’s now review hedge fund activity in other stocks similar to Osiris Therapeutics, Inc. (NASDAQ:OSIR). We will take a look at Caesarstone Ltd. (NASDAQ:CSTE), Nicolet Bankshares Inc. (NASDAQ:NCBS), FRP Holdings Inc (NASDAQ:FRPH), and LeMaitre Vascular Inc (NASDAQ:LMAT). All of these stocks’ market caps resemble OSIR’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $11 million in OSIR’s case. FRP Holdings Inc (NASDAQ:FRPH) is the most popular stock in this table. On the other hand Nicolet Bankshares Inc. (NASDAQ:NCBS) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Osiris Therapeutics, Inc. (NASDAQ:OSIR) is more popular among hedge funds. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. Unfortunately OSIR wasn’t nearly as popular as these 15 stock and hedge funds that were betting on OSIR were disappointed as the stock returned -100% and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 15 most popular stocks) among hedge funds as 13 of these stocks already outperformed the market this year.
Disclosure: None. This article was originally published at Insider Monkey.