EXACT Sciences Corporation (EXAS) compared to the 20 largest hedge fund stocks in 2019

The masses and most financial media seem to hate hedge funds and what they do, but why is this hate against hedge funds so striking? Ultimately, these asset managers don't rely on the hard-earned money of people on the verge of poverty. To be honest, most hedge fund managers and other smaller players in the industry are very smart and skilled investors. Of course, in some cases you can also place wrong bets, but no one knows what the future holds and how market participants will react to the numerous messages that flood every day. Standard and Poor’s 500 Total Return Index ETFs delivered a return of around 31% in 2019 (through December 23). Conversely, hedge fund top 20 large cap stocks returned 41.1% over the same period, with the majority of these stocks outperforming the broader benchmark. Coincidence? It may be, but it is unlikely. Our research over the past 18 years has shown that hedge fund consensus stocks generate superior risk-adjusted returns. For this reason, we believe that it is not a waste of time to review hedge fund sentiment before investing in a stock like EXACT Sciences Corporation (NASDAQ: EXAS).

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "EXACT Sciences Corporation (NASDAQ: EXAS) Shareholders have seen increased support from the world's most elite money managers in recent months. Our calculations also showed that EXAS is not among the 30 most popular hedge fund stocks (click for third quarter rankings and see the video at the end of this article for second quarter rankings). "Data reactid =" 12 ">EXACT Sciences Corporation (NASDAQ: EXAS) Shareholders have seen increased support from the world's most elite money managers in recent months. Our calculations also showed that EXAS is not among the 30 most popular stocks among hedge funds (click for the third quarter rankings and watch the video at the end of this article for the second quarter rankings).

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Hedge funds' reputation as smart investors has deteriorated over the past decade as their hedged returns have failed to match the unsecured returns of the market indices. Our research has shown that small cap hedge funds outperformed the market in double digits annually between 1999 and 2016, but the outperformance margin has been declining in recent years. Nevertheless, we were able to identify in advance a selected group of hedge fund holdings that the Russell 2000 ETFs have outperformed by 40 percentage points since May 2014 (see details here). We also pre-identified a select group of hedge fund holdings that lagged the market by 10 percentage points per year between 2006 and 2017. Interestingly, the underperformance of these stocks has increased in recent years. Investors who have been in the market for a long time and have short positions in these stocks would have achieved an annual return of more than 27% between 2015 and 2017. We have been tracking and publishing the list of these shares in our quarterly newsletter since February 2017.

(caption id = "attachment_746825" align = "aligncenter" width = "473") Matthew Halbower from Pentwater Capital (/ caption)

Matthew Halbower Pentwater Capital

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "We leave no stone unturned in the search for the next Great investment idea , for example, Discover offers This crazy cashback cardSo let's look at shortening the stock. One of the most bullish analysts in America just put his money where his mouth is. He says: "Today I invest more than in early 2009." So we check out its pitch, We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We're even considering this genius option weekly trading ideas, This December, we recommended Adams Energy as a one-way bet based on a fund manager's letter to investors. The share has already increased by 20 percent. Now let's take a look at the latest hedge fund promotion around EXACT Sciences Corporation (NASDAQ: EXAS). "Data-reactid =" 35 "> We leave nothing untouched when looking for the next great investment idea. For example, Discover offers This crazy cashback cardSo let's look at shortening the stock. One of the most bullish analysts in America just put his money where his mouth is. He says: "Today I invest more than in early 2009." So we check out its pitch, We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We're even considering this genius option weekly trading ideas, This December, we recommended Adams Energy as a one-way bet based on a fund manager's letter to investors. The share has already increased by 20 percent. Now we're going to review the latest hedge fund action related to EXACT Sciences Corporation (NASDAQ: EXAS).

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What does Smart Money think of EXACT Sciences Corporation (NASDAQ: EXAS)?

Looking at the fourth quarter of 2019, a total of 35 of the hedge funds pursued by Insider Monkey were long positions in this stock, a 9% change from a quarter earlier. The graph below shows the number of hedge funds with an optimistic position in EXAS in the last 17 quarters. As the mood of the hedgies fluctuates, there are some key hedge fund managers who have significantly increased their holdings (or have already built up large positions).

Among these funds, Viking Global was the most valuable investor in EXACT Sciences Corporation (NASDAQ: EXAS), which was valued at $ 197.5 million at the end of the third quarter. In second place was D E Shaw, who accumulated $ 94.8 million in stock. Renaissance Technologies, Citadel Investment Group and Columbus Circle Investors also liked the stock and became one of the company's largest hedge fund holders. In relation to the portfolio weights assigned to each position, Atika Capital assigned the greatest weight to EXACT Sciences Corporation (NASDAQ: EXAS) with around 1.9% of its 13F portfolio. Rock Springs Capital Management is also relatively optimistic about the stock and allocates EXAS 1.55 percent of its 13F stock portfolio.

With the rise in industry-wide interest, major hedge funds have driven this upward movement. PEAK6 Capital Management, managed by Matthew Hulsizer, has built the largest position in EXACT Sciences Corporation (NASDAQ: EXAS). PEAK6 Capital Management had invested $ 5.6 million in the company at the end of the quarter. The Tudor Investment Corp. by Paul Tudor Jones also launched a $ 5.2 million position during the quarter. The following funds were among the new EXAS investors: Joe DiMennas ZWEIG DIMENNA PARTNERS, the TIG Advisors by Carl Tiedemann and Michael Tiedemann and the Pentwater Capital Management by Matthew Halbower.

Let's also examine hedge fund activity in other stocks that are similar to EXACT Sciences Corporation (NASDAQ: EXAS). We'll take a look at Wynn Resorts, Limited (NASDAQ: WYNN), Regency Centers Corp (NASDAQ: REG), Cenovus Energy Inc (NYSE: CVE) and Continental Resources, Inc. (NYSE: CLR). The market capitalization of this group of shares corresponds to the market capitalization of EXAS.

(Table) Ticker, number of HFs with positions, total value of the HF positions (x1000), change of the HF position WYNN, 36.1171401, -3 REG, 16.233615.4 CVE, 25.635156.8 CLR, 37 , Average 434858.3, 28.5.618758.3 (/ table)

View the table here if formatting problems occur.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "As you can see, these stocks had an average of 28 , 5 hedge funds with bullish positions and an average investment in these stocks of $ 619 million, in the case of EXAS, $ 586 million.Continental Resources, Inc. (NYSE: CLR) is the most popular stock in this Regency Centers table Corp (NASDAQ: REG) is the least popular with only 16 bullish hedge fund positions, while EXACT Sciences Corporation (NASDAQ: EXAS) is not the most popular stock in this group, but interest in hedge funds is still above average. Our calculations showed The top 20 most popular stocks among hedge funds achieved a return of 41.1% up to December 23, 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points on December 23) and performed better than the market, hedge funds have been rewarded. Video: Click on the image to watch our video on the five most popular hedge fund stocks."data-reactid =" 63 "> As you can see, these stocks had an average of 28.5 hedge funds with optimistic positions and an average investment of $ 619 million, compared to $ 586 million at EXAS. Continental Resources, Inc. (NYSE: CLR) is the most popular stock in this table, while Regency Centers Corp (NASDAQ: REG) is the least popular with only 16 bullish hedge fund positions, and EXACT Sciences Corporation (NASDAQ: EXAS) is not the most popular stock in of this group, but interest in hedge funds remains above average: our calculations showed that the 20 most popular stocks among hedge funds in 2019 achieved a return of 41.1% by December 23 and the S&P 500 ETF (SPY) by 10 , 1 percentage point. Hedge funds were also right to bet on EXAS as the stock returned 53.7% in 2019 (through December 23) and outperformed the market. Hedge funds were rated for their relative Upward movement rewarded. Video: Click on the image to watch our video on the five most popular hedge fund stocks.

The 5 most popular stocks among hedge funds

Disclosure: none. This article was originally published by Insider Monkey.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Related content"data-reactid =" 77 ">Related content

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