Investment management company RGA Investment Advisors recently released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The losses of 2022 were partially recovered in the first quarter of 2023. Year-to-date, the Russell 2000 Index (represents small caps) was lagging the S&P 500 by 7.9%. Over the past year, the small caps are lagging by 7.7%. The company expects the best of the small and mid-caps to recover quicker than indexes. You can check the top 5 holdings of the fund to know its best picks in 2023.
RGA Investment Advisors highlighted stocks like Cytek Biosciences, Inc. (NASDAQ:CTKB) in the first quarter 2023 investor letter. Based in Fremont, California, Cytek Biosciences, Inc. (NASDAQ:CTKB) is a life sciences technology company that provides cell analysis tools. On June 5, 2023, Cytek Biosciences, Inc. (NASDAQ:CTKB) stock closed at $7.90 per share. One-month return of Cytek Biosciences, Inc. (NASDAQ:CTKB) was -31.90%, and its shares lost 26.44% of their value over the last 52 weeks. Cytek Biosciences, Inc. (NASDAQ:CTKB) has a market capitalization of $1.072 billion.
RGA Investment Advisors made the following comment about Cytek Biosciences, Inc. (NASDAQ:CTKB) in its Q1 2023 investor letter:
“One company we have done considerable work on, and built our position in is Cytek Biosciences, Inc. (NASDAQ:CTKB). A recent note from Morgan Stanley is very representative of the general approach towards small caps today. Specifically, Morgan has a price target about 40% above where CTKB’s shares ended the quarter, yet is equal weight rated (i.e., neither a buy nor a sell). One would think 40% upside were worthy of a buy in any environment, but not today! Morgan Stanley’s reasoning was as follows: given the nascent nature of CTKB’s business, particularly on the reagent front, and the sustained growth-to-value rotation as investors seek low-risk mature assets given an increasingly uncertain macro backdrop.” Cutting aside the jargon, the reasoning is effectively that this is a small, young, growing company and investors do not want that today.
CTKB is the leader in full spectrum flow cytometry (FSFC). In its simplest form, flow cytometry analyzes samples for the kinds of cells or particles present and studies cells to determine their characteristics like size and shape, surface markers, proteins, DNA, as well as the impact that potential treatments can have on cells. In other words, these are extremely versatile, widely deployed instruments used by core labs at universities, pharmaceutical and biotech companies, CROs, CDMOs, oncologists, immunologists, hematologists and more. Beckton Dickinson (NYSE: BDX) explained the significance of flow cytometry on their Q1 2023 earnings call by remarking that: “When you think about who is getting Nobel Prizes in [cell therapy and immune-oncology]…, almost all of them were using flow cytometry and I’m convinced you’re going to see a whole new set of discoveries being uncovered with the new technologies that we’re rolling out right now.” BDX was speaking about their own instruments; however, CTKB is far head in FSFC both technologically and in selling instruments to practitioners…” (Click here to read the full text)
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Cytek Biosciences, Inc. (NASDAQ:CTKB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Cytek Biosciences, Inc. (NASDAQ:CTKB) at the end of first quarter 2023 which was 16 in the previous quarter.
We discussed Cytek Biosciences, Inc. (NASDAQ:CTKB) in another article and shared Brown Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
