Does BridgeBio Pharma, Inc. (NASDAQ:BBIO) a good place to invest some of your money right now? We can gain valuable information to help us answer this question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who have immense resources and contacts in the world. industry to put their financial expertise to good use. The best picks from these companies have historically outperformed the market when we factor in known risk factors, making them very valuable investment ideas.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) has seen an increase in hedge fund sentiment lately. BridgeBio Pharma, Inc. (NASDAQ:BBIO) appeared in 28 hedge fund portfolios at the end of September. This statistic’s all-time high was previously 27. This means that the bullish number of hedge fund positions in this stock is currently at its all-time high. There were 27 hedge funds in our database with BBIO positions at the end of the second quarter. Our calculations also showed that BBIO is not one of the 30 most popular stocks among hedge funds (click for Q3 ranking).
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium prices have more than doubled over the past year, so we’re reviewing listings like the 10 best EV stocks to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. With all of that in mind, let’s take a look at the latest hedge fund action regarding BridgeBio Pharma, Inc. (NASDAQ:BBIO).
Ole Andreas Halvorsen of Viking Global
Do hedge funds think BBIO is a good stock to buy now?
At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this security, a change of 4% from the second quarter of 2021. The graph below shows the number of hedge funds with an uptrend position in BBIO over the past 25 quarters. So let’s see which hedge funds were among the top stock holders and which hedge funds were making big moves.
Looking at institutional investors followed by Insider Monkey, Viking Global, managed by Andreas Halvorsen, holds the largest position in BridgeBio Pharma, Inc. (NASDAQ: BBIO). Viking Global holds a position of $ 1.2477 billion in the stock, comprising 3.5% of its 13F portfolio. The second most optimistic fund manager is Joseph Edelman of Perceptive Advisors, with a position of $ 363.6 million; the fund has 5.3% of its 13F portfolio invested in the stock. The remaining members of Smart Money which are bullish are Lei Zhang’s Hillhouse Capital Management, Bihua Chen Cormorant asset management and Octagon Capital Advisors of Ting Jia. In terms of portfolio weights assigned to each position Octagon Capital Advisors assigned the largest weight to BridgeBio Pharma, Inc. (NASDAQ: BBIO), approximately 6.57% of its 13F portfolio. Perceptive Advisors is also relatively very bullish on the stock, distributing 5.28% of its 13F equity portfolio to BBIO.
As a result, specific fund managers were themselves innovating. Fisher Asset Management, managed by Ken Fisher, established the largest position in BridgeBio Pharma, Inc. (NASDAQ: BBIO). Fisher Asset Management had invested $ 26.7 million in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also invested $ 1.2 million in the stock during the quarter. Other funds with brand new BBIO positions are Hudson Bay Capital Management by Sander Gerber, Marshall Wace LLP by Paul Marshall and Ian Wace and David Harding Winton Capital Management.
Let’s also take a look at the activity of hedge funds in other stocks similar to BridgeBio Pharma, Inc. (NASDAQ: BBIO). We’ll take a look at Post Holdings Inc (NYSE:PUBLISH), Macy’s, Inc. (NYSE:M), Casey’s General Stores, Inc. (NASDAQ:CASY), Voya Financial Inc (NYSE:VOYA), Woori Financial Group Inc. (NYSE:WF), Chart Industries, Inc. (NYSE:GTLS) and BlackLine, Inc. (NASDAQ:BL). The market capitalizations of this group of stocks are closest to the market capitalization of BBIO.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF POST position, 27.1433693, -4 M, 41.1478930,6 CASY, 22.211044, -2 VOYA, 35.968117, -9 WF, 23608.0 GTLS, 22 350268, -5 BL, 18 326955, -2 Medium, 23.9.681802, -2.3 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 23.9 hedge funds with bullish positions and the average amount invested in these stocks was $ 682 million. That figure was $ 2,119 million in the case of BBIO. Macy’s, Inc. (NYSE:M) is the most popular action in this table. On the other hand, Woori Financial Group Inc. (NYSE:WF) is the least popular with only 2 bullish hedge fund positions. BridgeBio Pharma, Inc. (NASDAQ: BBIO) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for BBIO is 69.3. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9 and again beat the market by 5.1 percentage points. Unfortunately, BBIO was not as popular as these 5 stocks and the hedge funds that bet on BBIO were disappointed as the stock has returned -20.6% since the end of September (through 9/12) and has under- performed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Monkey initiate.