8 Rallying Biotech Stocks Being Bought Up By Hedge Funds

By Kapitall:The biotech industry is considered a growth industry with a very unique set of risks, mainly concerning the ability for research to turn into commercial success. For ideas on how to analyze stocks in the industry, we ran a screen. We screened the biotech industry for stocks seeing high amounts of net institutional purchases over the current quarter, indicating institutional investors such as hedge fund managers expect these names to outperform.

By Kapitall:Interested in finding short squeeze candidates? For ideas on where to look, we ran a screen you may find interesting. We screened for stocks from the biotech industry for those that are highly shorted, with float shorts above 15%. We then screened for those with the support of hedge funds, with significant institutional purchases over the current quarter.

By Kapitall:For a look at what the “big money” thinks about a stock, one idea is to look at institutional buying trends. We ran a screen on the biotech industry for stocks with the most significant net institutional selling over the current quarter, indicating that institutional investors like hedge funds think these names will underperform. ‪

By Kapitall:Analysts follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers (a.k.a. the “smart money”) because these investors have greater access to sophisticated research than most investors. When a company sees increased buying from institutions, it’s a signal to take a second look.

Kapitall submits:The following is a list of stocks in rally mode, i.e. trading above their 20-day, 50-day and 200-day moving averages. Furthermore, these stocks are small caps (market caps between $300M and $2B) and have experienced significant levels of institutional buying over the current quarter. This list might offer an interesting starting point for momentum investors looking to follow trends set by big money managers.

By Kapitall:Interested in stocks paying dividend income but don't know where to start? Here are some ideas you may find interesting. We ran a screen on dividend stocks currently rallying above their 20-day, 50-day, and 200-day moving averages for those with the most significant net institutional purchases over the current quarter. This indicates that institutional investors such as hedge fund managers and mutual fund managers believe these stocks will soon outperform.‪

By Kapitall:If you're interested in the tech sector but don't know where to start, here are some ideas you may find interesting. We ran a screen on the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages. We then screened these stocks for those with the most significant net institutional purchases over the current quarter. This buying suggests institutional investors such as hedge fund managers and mutual fund managers believe these names will outperform.

By Kapitall:If you like to follow what institutional investors like hedge fund managers are buying, you may be interested in this list.We ran a screen on stocks of companies based in the BRIC nations (Brazil, Russia, India, and China) for those seeing significant net institutional purchases over the current quarter.