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 funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH).
Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) investors should be aware of an increase in hedge fund interest lately. There were 10 hedge funds in our database with TTPH holdings 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 Calamos Asset Management, Inc (NASDAQ:CLMS), Castle Brands Inc (NYSEAMEX:ROX), and Westfield Financial, Inc. (NASDAQ:WFD) 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 new action surrounding Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH).
How have hedgies been trading Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from one quarter earlier. On the other hand, there were a total of 13 hedge funds with a bullish position in TTPH at the beginning of this year. So, let’s find out 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, Renaissance Technologies, one of the largest hedge funds in the world, holds the biggest position in Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH). Renaissance Technologies has a $2.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. The second most bullish fund manager is Steven Boyd of Armistice Capital, with a $2.5 million position; 0.8% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors with similar optimism consist of Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management, Jeffrey Jay and David Kroin’s Great Point Partners and Marc Majzner’s Clearline 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.