Published on 29 Oct 2021 on Insider Monkey via Yahoo Finance

Here is What Hedge Funds Think About Silverback Therapeutics, Inc. (SBTX)

Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Silverback Therapeutics, Inc. (NASDAQ:SBTX).

Hedge fund interest in Silverback Therapeutics, Inc. (NASDAQ:SBTX) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that SBTX isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings). 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 National HealthCare Corporation (NYSE:NHC), Meridian Bancorp, Inc. (NASDAQ:EBSB), and Anterix Inc. (NASDAQ:ATEX) to gather more data points.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.