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Here’s What Hedge Funds Think About Karyopharm Therapeutics Inc (KPTI)

Asma UL Husna


Karyopharm Therapeutics Inc (NASDAQ:KPTI) investors should be aware of a decrease in hedge fund interest lately. Our calculations also showed that KPTI isn't among the 30 most popular stocks among hedge funds.


[caption id="attachment_758402" align="aligncenter" width="450"] William Leland Edwards of Palo Alto Investors[/caption]

William Leland Edwards of Palo Alto Investors

Let's take a peek at the latest hedge fund action regarding Karyopharm Therapeutics Inc (NASDAQ:KPTI).

How have hedgies been trading Karyopharm Therapeutics Inc (NASDAQ:KPTI)?

Heading into the second quarter of 2019, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of -12% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards KPTI over the last 15 quarters. So, let's check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.


Among these funds, Palo Alto Investors held the most valuable stake in Karyopharm Therapeutics Inc (NASDAQ:KPTI), which was worth $30.7 million at the end of the first quarter. On the second spot was Consonance Capital Management which amassed $30.1 million worth of shares. Moreover, Millennium Management, Citadel Investment Group, and Renaissance Technologies were also bullish on Karyopharm Therapeutics Inc (NASDAQ:KPTI), allocating a large percentage of their portfolios to this stock.

Due to the fact that Karyopharm Therapeutics Inc (NASDAQ:KPTI) has witnessed declining sentiment from the smart money, logic holds that there exists a select few money managers that slashed their positions entirely heading into Q3. At the top of the heap, Wayne Holman's Ridgeback Capital Management cut the biggest position of the 700 funds watched by Insider Monkey, totaling an estimated $37 million in stock, and Steve Cohen's Point72 Asset Management was right behind this move, as the fund sold off about $14.4 million worth. These transactions are important to note, as total hedge fund interest fell by 2 funds heading into Q3.

Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Karyopharm Therapeutics Inc (NASDAQ:KPTI) but similarly valued. These stocks are Jumei International Holding Ltd (NYSE:JMEI), Dorian LPG Ltd (NYSE:LPG), Ferroglobe PLC (NASDAQ:GSM), and Southern National Banc. of Virginia, Inc (NASDAQ:SONA). This group of stocks' market caps resemble KPTI's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JMEI,3,10350,0 LPG,9,71357,2 GSM,11,42976,-3 SONA,8,19342,0 Average,7.75,36006,-0.25 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $104 million in KPTI's case. Ferroglobe PLC (NASDAQ:GSM) is the most popular stock in this table. On the other hand Jumei International Holding Ltd (NYSE:JMEI) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Karyopharm Therapeutics Inc (NASDAQ:KPTI) is more popular among hedge funds. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately KPTI wasn't nearly as popular as these 20 stocks and hedge funds that were betting on KPTI were disappointed as the stock returned 1.7% during the same period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market in Q2.


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