Published on 18 Oct 2021 on Insider Monkey via Yahoo Finance

Hedge Funds Are Crazy About Cytokinetics, Inc. (CYTK)

We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn't mean that they don't have occasional colossal losses; they do (like Melvin Capital's recent GameStop losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Cytokinetics, Inc. (NASDAQ:CYTK).

Is Cytokinetics, Inc. (NASDAQ:CYTK) a good investment now? The best stock pickers were taking a bullish view. The number of bullish hedge fund positions advanced by 2 lately. Cytokinetics, Inc. (NASDAQ:CYTK) was in 31 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic was previously 29. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CYTK isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

At the moment there are dozens of gauges stock traders put to use to evaluate publicly traded companies. Some of the best gauges are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the elite fund managers can trounce their index-focused peers by a significant margin (see the details here). Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.