Is F-star Therapeutics, Inc. (FSTX) Going to Burn These Hedge Funds?


With the series of first quarter 13F deposits behind us, it’s time to take a look at which stocks some of the world’s top fund managers preferred to invest or sell before Q2 2021. One of those stocks was F -star Therapeutics, Inc. (NASDAQ:FSTX).

Is F-star Therapeutics, Inc. (NASDAQ:FSTX) the right investment to pursue these days? Smart money was becoming hopeful. The number of bullish bets on hedge funds has increased by 1 in recent times. F-star Therapeutics, Inc. (NASDAQ:FSTX) was in the portfolios of 4 hedge funds at the end of the first quarter of 2021. The historical high for this statistic is 9. Our calculations have also shown that FSTX is not among the 30 most popular stocks among hedge funds (click for Q1 ranking). There were 3 hedge funds in our database with FSTX positions at the end of the fourth quarter.

For most market participants, hedge funds are seen as irrelevant and obsolete financial vehicles of yesteryear. While there are currently over 8,000 funds that are open, our researchers are looking at the upper echelon of that group, approximately 850 funds. These hedge fund managers oversee the majority of the total asset base of all hedge funds, and in pursuing their unparalleled stock picks, Insider Monkey has uncovered many investment strategies that have historically surpassed the broader indexes. Insider Monkey’s flagship short hedge fund strategy has outperformed S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. In addition, our monthly newsletter’s long equity selection portfolio has reported 206.8% since March 2017 (through May 2021) and has beaten the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Oleg Nodelman EcoR1 Capital

Oleg Nodelman of EcoR1 Capital

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, an activist hedge fund wants to buy this $ 28 biotech share for $ 50. We therefore recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best stocks of batteries 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. We read letters from hedge fund investors and listen to market arguments at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. Now let’s take a look at the latest hedge fund action involving F-star Therapeutics, Inc. (NASDAQ:FSTX).

Do hedge funds think FSTX is a good stock to buy now?

At the end of the first quarter, a total of 4 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 33% from the fourth quarter of 2020. The graph below shows the number of hedge funds with a bullish position in FSTX over the last 23 quarters. With the change of hands of smart money capital, there is a select group of notable hedge fund managers who were increasing their stakes significantly (or already building up large positions).

Is FSTX a good stock to buy?

Is FSTX a good stock to buy?

According to publicly available data on hedge funds and institutional investors compiled by Insider Monkey, Renaissance Technologies holds the largest position in F-star Therapeutics, Inc. (NASDAQ: FSTX), worth nearly 1.5 million dollars, or less than 0.1 %% of its total portfolio of 13F. The second most optimistic fund manager is Steve Cohen of Point72 asset management, with a position of $ 0.8 million; less than 0.1 %% of its 13F portfolio is allocated to the company. Other professional fund managers who hold long positions contain Oleg Nodelman’s EcoR1 capital, Ken Griffin’s capital Citadelle investment group and. In terms of the portfolio weights assigned to each position, EcoR1 Capital assigned the largest weight to F-star Therapeutics, Inc. (NASDAQ: FSTX), approximately 0.02% of its 13F portfolio. Point72 Asset Management is also relatively very bullish on the stock, setting aside 0.0038% of its 13F equity portfolio at FSTX.

As might be expected, key fund managers were behind this optimism. Point72 Asset Management, managed by Steve Cohen, initiated the largest position in F-star Therapeutics, Inc. (NASDAQ: FSTX). Point72 Asset Management had invested $ 0.8 million in the company at the end of the quarter. that of Oleg Nodelman Capital EcoR1 also initiated a $ 0.5 million position during the quarter. The only other fund with a new equity position is Ken Griffin’s Citadel Investment Group.

Let’s also look at hedge fund activity in other stocks – not necessarily in the same industry as F-star Therapeutics, Inc. (NASDAQ: FSTX) but of similar value. These stocks are Reed’s, Inc. (NYSE:REED), TransAct Technologies Incorporated (NASDAQ:TACT), American River Bankshares (NASDAQ:AMRB), Corenergy Infrastructure Trust Inc (NYSE:CORR), Lumos Pharma, Inc. (NASDAQ:LUMO), OpGen, Inc. (NASDAQ:OPGN) and CLPS Incorporation (NASDAQ:CLPS). All market caps of these stocks are similar to the market cap of FSTX.

[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF REED, 4.6108.0 TACT, 7.17078.0 AMRB, 1.230.0 CORR, 6.5351, -4 LUMO, 4,17428, -5 OPGN, 3,339,2 CLPS, 2,321, -1 Medium, 3,9,6694, -1,1 [/table]

See the table here if you have formatting problems.

As you can see, these stocks had an average of 3.9 hedge funds with bullish positions and the average amount invested in these stocks was $ 7 million. That figure was $ 3 million in the case of FSTX. TransAct Technologies Incorporated (NASDAQ:TACT) is the most popular action in this table. On the other hand, American River Bankshares (NASDAQ:AMRB) is the least popular with only 1 bullish hedge fund positions. F-star Therapeutics, Inc. (NASDAQ: FSTX) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for FSTX is 44.3. 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 17.2% in 2021 through June 11 and again beat the market by 3.3 percentage points. Unfortunately, FSTX was not as popular as these 5 stocks and the hedge funds that bet on FSTX were disappointed as the stock returned -33.6% from the end of March (through 6/11) and 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.

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