Synageva BioPharma Corp (NASDAQ:GEVA) has experienced an increase in hedge fund sentiment in recent months.
At the moment, there are dozens of metrics shareholders can use to watch publicly traded companies. A couple of the most useful 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 money managers can outclass their index-focused peers by a very impressive amount (see just how much).
Equally as key, optimistic insider trading activity is another way to parse down the stock market universe. As the old adage goes: there are lots of stimuli for an upper level exec to drop shares of his or her company, but only one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this tactic if piggybackers know where to look (learn more here).
Consequently, it’s important to take a look at the latest action regarding Synageva BioPharma Corp (NASDAQ:GEVA).
How have hedgies been trading Synageva BioPharma Corp (NASDAQ:GEVA)?
In preparation for this year, a total of 6 of the hedge funds we track were long in this stock, a change of 50% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, Julian Baker and Felix Baker’s Baker Bros. Advisors had the largest position in Synageva BioPharma Corp (NASDAQ:GEVA), worth close to $387.1 million, comprising 10.1% of its total 13F portfolio. The second largest stake is held by Richard Driehaus of Driehaus Capital, with a $10.9 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.
As aggregate interest increased, key hedge funds have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, assembled the biggest position in Synageva BioPharma Corp (NASDAQ:GEVA). Citadel Investment Group had 0.4 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also initiated a $0.2 million position during the quarter.
What have insiders been doing with Synageva BioPharma Corp (NASDAQ:GEVA)?
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Synageva BioPharma Corp (NASDAQ:GEVA) has seen 3 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Synageva BioPharma Corp (NASDAQ:GEVA). These stocks are Nektar Therapeutics (NASDAQ:NKTR), Acorda Therapeutics Inc (NASDAQ:ACOR), ImmunoGen, Inc. (NASDAQ:IMGN), Viropharma Inc (NASDAQ:VPHM), and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). This group of stocks are the members of the biotechnology industry and their market caps match GEVA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Nektar Therapeutics (NASDAQ:NKTR) | 9 | 0 | 0 |
| Acorda Therapeutics Inc (NASDAQ:ACOR) | 10 | 0 | 7 |
| ImmunoGen, Inc. (NASDAQ:IMGN) | 5 | 1 | 2 |
| Viropharma Inc (NASDAQ:VPHM) | 20 | 1 | 5 |
| Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) | 10 | 1 | 6 |
With the returns demonstrated by the aforementioned studies, retail investors should always watch hedge fund and insider trading sentiment, and Synageva BioPharma Corp (NASDAQ:GEVA) is no exception.
