There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don’t cover. Because of Carl Icahn and other successful funds’ exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze PTC Therapeutics, Inc. (NASDAQ:PTCT).
PTC Therapeutics, Inc. (NASDAQ:PTCT) saw an increase in enthusiasm from smart money recently. There were 15 funds in our database with long positions in PTCT at the end of September, compared to 15 funds a quarter earlier. At the end of this article we will also compare PTCT to other stocks including Agilysys, Inc. (NASDAQ:AGYS), Capital City Bank Group, Inc. (NASDAQ:CCBG), and Contango Oil & Gas Company (NYSEAMEX:MCF) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
With all of this in mind, let’s take a gander at the key action surrounding PTC Therapeutics, Inc. (NASDAQ:PTCT).
What have hedge funds been doing with PTC Therapeutics, Inc. (NASDAQ:PTCT)?
At Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, up by 15% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards PTCT over the last five quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Stephen DuBois’ Camber Capital Management has the biggest position in PTC Therapeutics, Inc. (NASDAQ:PTCT), worth close to $28 million, accounting for 1.2% of its total 13F portfolio. The second largest stake is held by Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, which disclosed a $10.9 million position; 1.1% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that are bullish comprise D. E. Shaw’s D E Shaw, Jim Simons’ Renaissance Technologies, and Hal Mintz’s Sabby Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.