Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.
In this article, we are going to take a closer look at BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), which registered a slight increase in popularity among smart money investors. At the end of September, 16 funds tracked by Insider Monkey held long positions in BCRX, versus 15 funds at the end of June. At the end of this article we will also compare BCRX to other stocks including Merchants Bancshares,Inc. (NASDAQ:MBVT), Comtech Telecomm. Corp. (NASDAQ:CMTL), and Lifetime Brands Inc (NASDAQ:LCUT) 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.
Keeping this in mind, we’re going to take a look at the new action regarding BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX).
Hedge fund activity in BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)
During the third quarter, the number of investors tracked by Insider Monkey bullish on BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) inched up by 7% to 16. By comparison, 15 hedge funds held shares or bullish call options in BCRX heading into this year. So, let’s see 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, Julian Baker and Felix Baker’s Baker Bros. Advisors has the largest position in BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), worth close to $48.4 million. The second largest stake is held by James E. Flynn’s Deerfield Management, with a $19.4 million position. Remaining hedge funds and institutional investors that are bullish contain D. E. Shaw’s D E Shaw, Peter Kolchinsky’s RA Capital Management, and Ken Greenberg and David Kim’s Ghost Tree 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.