Alkermes Plc (NASDAQ:ALKS) was in 14 hedge funds’ portfolio at the end of the fourth quarter of 2012. ALKS has seen a decrease in support from the world’s most elite money managers in recent months. There were 14 hedge funds in our database with ALKS positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are tons of metrics market participants can use to watch stocks. Two of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can beat the market by a solid margin (see just how much).
Equally as key, positive insider trading activity is a second way to parse down the stock market universe. Obviously, there are lots of incentives for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand where to look (learn more here).
Keeping this in mind, it’s important to take a look at the key action encompassing Alkermes Plc (NASDAQ:ALKS).
How are hedge funds trading Alkermes Plc (NASDAQ:ALKS)?
In preparation for this year, a total of 14 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were boosting their stakes substantially.
According to our comprehensive database, Kevin Kotler’s Broadfin Capital had the biggest position in Alkermes Plc (NASDAQ:ALKS), worth close to $31 million, accounting for 7.6% of its total 13F portfolio. Sitting at the No. 2 spot is Daniel Arbess of Xerion, with a $10 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
Seeing as Alkermes Plc (NASDAQ:ALKS) has witnessed bearish sentiment from the smart money, it’s safe to say that there were a few hedge funds who were dropping their entire stakes heading into 2013. Intriguingly, James E. Flynn’s Deerfield Management dumped the biggest investment of all the hedgies we key on, worth close to $31 million in stock.. Peter J. Eichler Jr.’s fund, Aletheia Research and Management, also cut its stock, about $14 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Insider trading activity in Alkermes Plc (NASDAQ:ALKS)
Insider trading activity, especially when it’s bullish, is most useful when the company in question has seen transactions within the past half-year. Over the last six-month time period, Alkermes Plc (NASDAQ:ALKS) has experienced 1 unique insiders buying, and 10 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Alkermes Plc (NASDAQ:ALKS). These stocks are Hospira, Inc. (NYSE:HSP), Elan Corporation, plc (ADR) (NYSE:ELN), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Petmed Express Inc (NASDAQ:PETS), and Delcath Systems, Inc. (NASDAQ:DCTH). This group of stocks belong to the drug delivery industry and their market caps are similar to ALKS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Hospira, Inc. (NYSE:HSP) | 24 | 0 | 0 |
| Elan Corporation, plc (ADR) (NYSE:ELN) | 22 | 0 | 0 |
| Valeant Pharmaceuticals Intl Inc (NYSE:VRX) | 34 | 4 | 1 |
| Petmed Express Inc (NASDAQ:PETS) | 5 | 0 | 2 |
| Delcath Systems, Inc. (NASDAQ:DCTH) | 3 | 0 | 0 |
With the returns demonstrated by our studies, everyday investors should always watch hedge fund and insider trading activity, and Alkermes Plc (NASDAQ:ALKS) is no exception.
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