Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Ophthotech Corp (NASDAQ:
Is Ophthotech Corp (NASDAQ:OPHT) undervalued? The best stock pickers are in a bullish mood. The number of bullish hedge fund bets jumped by 11 in recent months. OPHT was in 38 hedge funds’ portfolios at the end of September. There were 27 hedge funds in our database with OPHT holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Granite Construction Inc. (NYSE:
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