Acorda Therapeutics Inc (ACOR): Insiders Are Dumping, Should You?

Acorda Therapeutics Inc (NASDAQ:ACOR) was in 10 hedge funds’ portfolio at the end of the fourth quarter of 2012. ACOR investors should pay attention to a decrease in support from the world’s most elite money managers of late. There were 15 hedge funds in our database with ACOR positions at the end of the previous quarter.

In the financial world, there are plenty of metrics investors can use to track Mr. Market. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best fund managers can outclass the market by a significant amount (see just how much).

Equally as integral, positive insider trading activity is another way to parse down the world of equities. There are plenty of incentives for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this tactic if investors know where to look (learn more here).

With all of this in mind, let’s take a peek at the latest action regarding Acorda Therapeutics Inc (NASDAQ:ACOR).

Hedge fund activity in Acorda Therapeutics Inc (NASDAQ:ACOR)

In preparation for this year, a total of 10 of the hedge funds we track held long positions in this stock, a change of -33% from the third quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings meaningfully.

Of the funds we track, SAC Capital Advisors, managed by Steven Cohen, holds the most valuable position in Acorda Therapeutics Inc (NASDAQ:ACOR). SAC Capital Advisors has a $18.7 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Millennium Management, managed by Israel Englander, which held a $10.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Samuel Isaly’s OrbiMed Advisors, Jim Simons’s Renaissance Technologies and Sean Cullinan’s Point State Capital.

Since Acorda Therapeutics Inc (NASDAQ:ACOR) has faced declining sentiment from the smart money, we can see that there exists a select few hedgies that decided to sell off their entire stakes last quarter. At the top of the heap, Roberto Mignone’s Bridger Management sold off the largest investment of the “upper crust” of funds we monitor, totaling about $19.2 million in stock., and Mark Broach of Manatuck Hill Partners was right behind this move, as the fund dumped about $3.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 5 funds last quarter.

What do corporate executives and insiders think about Acorda Therapeutics Inc (NASDAQ:ACOR)?

Insider trading activity, especially when it’s bullish, is best served when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time period, Acorda Therapeutics Inc (NASDAQ:ACOR) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Acorda Therapeutics Inc (NASDAQ:ACOR). These stocks are Synageva BioPharma Corp (NASDAQ:GEVA), Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), Sarepta Therapeutics Inc (NASDAQ:SRPT), ImmunoGen, Inc. (NASDAQ:IMGN), and Nektar Therapeutics (NASDAQ:NKTR). This group of stocks are the members of the biotechnology industry and their market caps match ACOR’s market cap.

With the returns exhibited by Insider Monkey’s strategies, everyday investors should always pay attention to hedge fund and insider trading activity, and Acorda Therapeutics Inc (NASDAQ:ACOR) shareholders fit into this picture quite nicely.

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