Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Tobira Therapeutics Inc (NASDAQ:TBRA) .
Tobira Therapeutics Inc (NASDAQ:TBRA) shareholders have witnessed an increase in support from the world’s most successful money managers lately. There were 7 hedge funds in our database with TBRA positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Daqo New Energy Corp (NYSE:DQ), Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR), and Miller Industries, Inc. (NYSE:MLR) to gather more data points.
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.
Keeping this in mind, let’s go over the latest action surrounding Tobira Therapeutics Inc (NASDAQ:TBRA).
Hedge fund activity in Tobira Therapeutics Inc (NASDAQ:TBRA)
Heading into the fourth quarter of 2016, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 114% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TBRA over the last 5 quarters. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Matthew Halbower’s Pentwater Capital Management has the most valuable position in Tobira Therapeutics Inc (NASDAQ:TBRA), worth close to $147 million, amounting to 1.4% of its total 13F portfolio. The second most bullish fund manager is Frazier Healthcare Partners, led by Alan Frazier, holding a $106 million position; 52% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish consist of John Paulson’s Paulson & Co, Isaac Corre’s Governors Lane and Mark Lampert’s Biotechnology Value Fund / BVF Inc. 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.