Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Pfenex Inc (PFNX) Going to Burn These Hedge Funds?

Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Pfenex Inc (NYSEMKT:PFNX).

Pfenex Inc (NYSEMKT:PFNX) was in 10 hedge funds’ portfolios at the end of the third quarter of 2015. PFNX has seen an increase in hedge fund interest recently. There were 8 hedge funds in our database with PFNX holdings at the end of the previous quarter. At the end of this article we will also compare PFNX to other stocks including Kimball Electronics Inc (NASDAQ:KE), Ocular Therapeutix Inc (NASDAQ:OCUL), and NeoGenomics, Inc. (NASDAQ:NEO) to get a better sense of its popularity.

Follow Pfenex Inc. (NYSEMKT:PFNX)

In today’s marketplace there are dozens of tools market participants put to use to appraise publicly traded companies. A duo of the less known tools are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the top fund managers can trounce their index-focused peers by a healthy amount (see the details here).

Keeping this in mind, let’s take a look at the new action regarding Pfenex Inc (NYSEMKT:PFNX).

How have hedgies been trading Pfenex Inc (NYSEMKT:PFNX)?

Heading into Q4, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of 25% from the second quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Joseph Edelman’s Perceptive Advisors has the number one position in Pfenex Inc (NYSEMKT:PFNX), worth close to $14.6 million, comprising 1.2% of its total 13F portfolio. The second largest stake is held by Bihua Chen of Cormorant Asset Management, with a $9.4 million position; 1.5% of its 13F portfolio is allocated to the stock. Other peers with similar optimism encompass Jacob Gottlieb’s Visium Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP and James Dondero’s Highland Capital Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.