The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Cutera, Inc. (NASDAQ:CUTR).
Cutera, Inc. (NASDAQ:CUTR) was in 13 hedge funds’ portfolios at the end of the third quarter of 2019. CUTR shareholders have witnessed an increase in hedge fund sentiment recently. There were 10 hedge funds in our database with CUTR holdings at the end of the previous quarter. Our calculations also showed that CUTR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Why do we pay any attention at all to hedge fund sentiment? 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 Russell 2000 ETFs by 40 percentage points since May 2014 (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 27.8% through November 21, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds‘ buy/sell signals. We’re going to go over the key hedge fund action surrounding Cutera, Inc. (NASDAQ:CUTR).
What does smart money think about Cutera, Inc. (NASDAQ:CUTR)?
At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 30% from one quarter earlier. By comparison, 13 hedge funds held shares or bullish call options in CUTR a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, GAMCO Investors held the most valuable stake in Cutera, Inc. (NASDAQ:CUTR), which was worth $32.4 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $19.3 million worth of shares. Voce Capital, Archon Capital Management, and Cloverdale Capital Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Voce Capital allocated the biggest weight to Cutera, Inc. (NASDAQ:CUTR), around 5.19% of its 13F portfolio. Cloverdale Capital Management is also relatively very bullish on the stock, dishing out 4.75 percent of its 13F equity portfolio to CUTR.
Consequently, specific money managers have been driving this bullishness. Cloverdale Capital Management, managed by C. Jonathan Gattman, assembled the largest position in Cutera, Inc. (NASDAQ:CUTR). Cloverdale Capital Management had $7 million invested in the company at the end of the quarter. Josh Goldberg’s G2 Investment Partners Management also initiated a $6.8 million position during the quarter. The other funds with brand new CUTR positions are Ken Griffin’s Citadel Investment Group, Richard Driehaus’s Driehaus Capital, and Paul Tudor Jones’s Tudor Investment Corp.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Cutera, Inc. (NASDAQ:CUTR) but similarly valued. These stocks are Intra-Cellular Therapies Inc (NASDAQ:ITCI), New Frontier Corp (NYSE:NFC), Chuy’s Holdings Inc (NASDAQ:CHUY), and IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP). All of these stocks’ market caps resemble CUTR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ITCI | 11 | 33556 | 0 |
| NFC | 13 | 71506 | 1 |
| CHUY | 10 | 27713 | -2 |
| IRCP | 4 | 13177 | 0 |
| Average | 9.5 | 36488 | -0.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $97 million in CUTR’s case. New Frontier Corp (NYSE:NFC) is the most popular stock in this table. On the other hand IRSA Propiedades Comerciales S.A. (NASDAQ:IRCP) is the least popular one with only 4 bullish hedge fund positions. Cutera, Inc. (NASDAQ:CUTR) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. Hedge funds were also right about betting on CUTR as the stock returned 31% during the fourth quarter (through the end of November) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.
