Insider Insights: Uncovering the Secrets of America’s Wealthiest Stock Traders
Ever wondered what drives the investment decisions of America’s most successful stock traders? Thanks to the Securities and Exchange Commission, we can get a glimpse into their strategies every three months. The 13F form, required for anyone with over $100 million in assets under management, reveals which stocks they’re buying and selling.
The AI Revolution
Artificial intelligence (AI) has been the dominant theme in the stock market since ChatGPT’s emergence a couple of years ago. One AI data-mining specialist, Palantir (NASDAQ: PLTR), saw its shares skyrocket 945% from the end of 2022 to November 1, 2024.
Citadel’s Shift in Strategy
Despite Palantir’s impressive gains, Citadel, led by Ken Griffin, sold approximately 5.2 million shares in the third quarter, reducing its stake by 91%. This move suggests Griffin may not be convinced of Palantir’s continued bull run. However, Citadel didn’t shy away from investing in another high-flying stock, Summit Therapeutics (NASDAQ: SMMT).
Summit Therapeutics: A Cancer Breakthrough?
Shares of Summit Therapeutics have surged over 600% in 2024, with Wall Street analysts predicting further growth. The clinical-stage cancer drug developer is working on ivonescimab, a treatment for lung cancer outside of China. Akeso, the Chinese company that owns ivonescimab, has already received approval to market the therapy to lung cancer patients.
Ivonescimab’s Promising Results
In a head-to-head trial with Keytruda, ivonescimab demonstrated impressive results, reducing the risk of disease progression by 49% in newly diagnosed lung cancer patients. If approved by the FDA, ivonescimab could potentially become a blockbuster drug, rivaling Keytruda’s $25 billion annual sales.
The Road Ahead for Summit Therapeutics
While ivonescimab shows promise, it’s still awaiting FDA approval. Summit Therapeutics is conducting phase 3 trials in the U.S. to support its applications. The Harmoni trial, testing ivonescimab with standard chemotherapy, is expected to release top-line data in mid-2025. The Harmoni-3 trial, comparing ivonescimab with Keytruda, won’t report results until 2027.
A Risky Bet for Most Investors
With a market cap of $13.6 billion, Summit Therapeutics’ valuation is already lofty. While ivonescimab may eventually become a popular first-line lung cancer therapy, the risk of failure is still significant. For most investors, the potential risks outweigh the rewards.
Expert Insights for Savvy Investors
Before investing in Summit Therapeutics, consider the expert analysis from The Motley Fool’s Stock Advisor team. They’ve identified 10 stocks with monster return potential, including Nvidia, which has delivered a staggering 84,721% return since its recommendation in 2005. Get access to their exclusive insights and build a winning portfolio with Stock Advisor.
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