9 Stocks On Winning Streaks With Significant Hedge Fund Buying

Every now and then it’s nice to have assurance that hedge fund managers and professional stock pickers know what they’re doing, and do it well. With that in mind we created a list of outperforming stocks that hedge funds have been buying up in the current quarter.

The list of stocks below have met the following criteria:
- Winning Streaks (see below for more info)
- Significant net institutional purchases in the current quarter
- Market cap over $300 million (for stability)

For our purposes winning streaks are measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

Below is our final list of 9 stocks that made the cut. Do you think they have more upside to price in? List Average 1-Year Return: 46%.

 

1. Accuray Incorporated : Designs, develops, and sells the CyberKnife system, an image-guided robotic radiosurgery system used for the treatment of solid tumors. Market cap at $488.95M, most recent closing price at $6.79. Net institutional purchases in the current quarter at 3.7M shares, which represents about 6.% of the company’s float of 61.63M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 0.86% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

 

2. CalAmp Corp. : Develops and markets wireless communications solutions that deliver data, voice, and video for critical networked communications and other applications in the United States. Market cap at $269.63M, most recent closing price at $9.10. Net institutional purchases in the current quarter at 4.3M shares, which represents about 17.37% of the company’s float of 24.75M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.21% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

 

3. Coca-Cola Hellenic Bottling Company S.A. : Engages in the production, sale, and distribution of alcohol-free beverages primarily in Europe. Market cap at $7.97B, most recent closing price at $21.75. Net institutional purchases in the current quarter at 12.1M shares, which represents about 6.26% of the company’s float of 193.15M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 0.87% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

 

4. Harbinger Group Inc. : Operates as the holding company that focuses on acquiring interests in companies that operate in diverse range of industries. Market cap at $1.37B, most recent closing price at $9.75. Net institutional purchases in the current quarter at 3.9M shares, which represents about 17.71% of the company’s float of 22.02M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.13% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 1 day (i.e. a win streak / losing streak ratio of 5.).

 

5. Lawson Products Inc. : Distributes products and services to the industrial, commercial, institutional, and governmental maintenance, repair, and operations marketplace in the United States and Canada. Market cap at $63.21M, most recent closing price at $7.35. Net institutional purchases in the current quarter at 266.3K shares, which represents about 6.3% of the company’s float of 4.23M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.05% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock’s daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.5).

 

6. Nationstar Mortgage Holdings Inc. : Designs, develops, manufactures, and markets analog and mixed-signal integrated circuits and sub-systems. Market cap at $2.87B, most recent closing price at $32.15. Net institutional purchases in the current quarter at 2.1M shares, which represents about 11.01% of the company’s float of 19.07M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 0.81% (measured close to close, over the last month). During this period, the longest winning streak lasted 8 days (i.e. the stock’s daily returns outperformed the S&P 500 for 8 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 4.).

 

7. Pain Therapeutics Inc. : Engages in the research and development of novel drugs. Market cap at $235.15M, most recent closing price at $5.25. Net institutional purchases in the current quarter at 2.5M shares, which represents about 10.4% of the company’s float of 24.03M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.05% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

 

8. SciClone Pharmaceuticals, Inc. : Engages in the development and commercialization of novel therapeutics for the treatment of oncology, infectious diseases, cardiovascular, urological, respiratory, and central nervous system disorders in the People’s Republic of China and internationally. Market cap at $326.04M, most recent closing price at $5.72. Net institutional purchases in the current quarter at 8.0M shares, which represents about 15.19% of the company’s float of 52.68M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.09% (measured close to close, over the last month). During this period, the longest winning streak lasted 3 days (i.e. the stock’s daily returns outperformed the S&P 500 for 3 consecutive days). The longest losing streak lasted 1 day (i.e. a win streak / losing streak ratio of 3.).

 

9. Synergy Resources Corporation: Engages in the acquisition, exploitation, exploration, development, and production of oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Market cap at $216.95M, most recent closing price at $4.22. Net institutional purchases in the current quarter at 2.8M shares, which represents about 6.98% of the company’s float of 40.10M shares.

The stock’s average daily alpha vs. the S&P500 index stands at 1.52% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock’s daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

Price data sourced from Yahoo! Finance, institutional data sourced from Fidelity, all other data sourced from Finviz.

 

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