Published on 10 Nov 2021 on Insider Monkey via Yahoo Finance

Was The Smart Money Right About Schrodinger, Inc. (SDGR)?

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 900 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds' 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Schrodinger, Inc. (NASDAQ:SDGR) in this article.

Schrodinger, Inc. (NASDAQ:SDGR) was in 20 hedge funds' portfolios at the end of June. The all time high for this statistic is 24. SDGR shareholders have witnessed an increase in hedge fund sentiment lately. There were 17 hedge funds in our database with SDGR holdings at the end of March. Our calculations also showed that SDGR isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.