Hedge Funds Are Betting On Gilead Sciences, Inc. (GILD)

Gilead Sciences, Inc. (NASDAQ:GILD) was in 63 hedge funds’ portfolio at the end of March. GILD shareholders have witnessed an increase in hedge fund sentiment of late. There were 53 hedge funds in our database with GILD positions at the end of the previous quarter.

In the 21st century investor’s toolkit, there are tons of indicators shareholders can use to track publicly traded companies. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the market by a solid amount (see just how much).

Just as beneficial, optimistic insider trading activity is a second way to parse down the world of equities. There are a variety of reasons for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this method if you understand what to do (learn more here).

Consequently, we’re going to take a look at the recent action surrounding Gilead Sciences, Inc. (NASDAQ:GILD).

How are hedge funds trading Gilead Sciences, Inc. (NASDAQ:GILD)?

At the end of the first quarter, a total of 63 of the hedge funds we track held long positions in this stock, a change of 19% from the previous 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 upping their stakes substantially.

Of the funds we track, Visium Asset Management, managed by Jacob Gottlieb, holds the biggest position in Gilead Sciences, Inc. (NASDAQ:GILD). Visium Asset Management has a $460.8 million position in the stock, comprising 11.9% of its 13F portfolio. On Visium Asset Management’s heels is John Griffin of Blue Ridge Capital, with a $391.5 million position; 4.9% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Phill Gross and Robert Atchinson’s Adage Capital Management, Donald Chiboucis’s Columbus Circle Investors and Samuel Isaly’s OrbiMed Advisors.

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Brookside Capital, managed by Bain Capital, established the most outsized position in Gilead Sciences, Inc. (NASDAQ:GILD). Brookside Capital had 150.1 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also initiated a $46.2 million position during the quarter. The other funds with brand new GILD positions are Stanley Druckenmiller’s Duquesne Capital, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, and Dmitry Balyasny’s Balyasny Asset Management.

What have insiders been doing with Gilead Sciences, Inc. (NASDAQ:GILD)?

Insider purchases made by high-level executives is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, Gilead Sciences, Inc. (NASDAQ:GILD) has seen 1 unique insiders buying, and 4 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Gilead Sciences, Inc. (NASDAQ:GILD). These stocks are Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), Biogen Idec Inc. (NASDAQ:BIIB), Celgene Corporation (NASDAQ:CELG), and Amgen, Inc. (NASDAQ:AMGN). This group of stocks belong to the biotechnology industry and their market caps are similar to GILD’s market cap.

With the results exhibited by Insider Monkey’s research, retail investors must always pay attention to hedge fund and insider trading sentiment, and Gilead Sciences, Inc. (NASDAQ:GILD) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds