Albany Molecular Research, Inc. (NASDAQ:AMRI) was in 12 hedge funds’ portfolio at the end of the first quarter of 2013. AMRI shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. There were 10 hedge funds in our database with AMRI holdings at the end of the previous quarter.
If you’d ask most market participants, hedge funds are seen as slow, outdated investment vehicles of yesteryear. While there are over 8000 funds in operation at present, we at Insider Monkey look at the masters of this group, about 450 funds. It is widely believed that this group has its hands on most of the smart money’s total asset base, and by paying attention to their top investments, we have spotted a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Just as key, optimistic insider trading activity is another way to break down the stock market universe. Just as you’d expect, there are many incentives for an insider to get rid of shares of his or her company, but just one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this strategy if shareholders understand where to look (learn more here).
With all of this in mind, it’s important to take a glance at the recent action surrounding Albany Molecular Research, Inc. (NASDAQ:AMRI).
What does the smart money think about Albany Molecular Research, Inc. (NASDAQ:AMRI)?
In preparation for this quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 20% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their stakes considerably.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the largest position in Albany Molecular Research, Inc. (NASDAQ:AMRI), worth close to $15.2 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $6.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that hold long positions include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and D. E. Shaw’s D E Shaw.
Now, key hedge funds have jumped into Albany Molecular Research, Inc. (NASDAQ:AMRI) headfirst. Millennium Management, managed by Israel Englander, initiated the most valuable position in Albany Molecular Research, Inc. (NASDAQ:AMRI). Millennium Management had 2.1 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $1 million investment in the stock during the quarter. The other funds with brand new AMRI positions are Neil Chriss’s Hutchin Hill Capital and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
How are insiders trading Albany Molecular Research, Inc. (NASDAQ:AMRI)?
Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past half-year. Over the latest 180-day time period, Albany Molecular Research, Inc. (NASDAQ:AMRI) has experienced 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Albany Molecular Research, Inc. (NASDAQ:AMRI). These stocks are Osiris Therapeutics, Inc. (NASDAQ:OSIR), 3SBio Inc. (ADR) (NASDAQ:SSRX), PROLOR Biotech Inc (NYSEAMEX:PBTH), XenoPort, Inc. (NASDAQ:XNPT), and Novavax, Inc. (NASDAQ:NVAX). This group of stocks are in the biotechnology industry and their market caps are similar to AMRI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Osiris Therapeutics, Inc. (NASDAQ:OSIR) | 4 | 1 | 3 |
| 3SBio Inc. (ADR) (NASDAQ:SSRX) | 11 | 0 | 0 |
| PROLOR Biotech Inc (NYSEAMEX:PBTH) | 3 | 1 | 0 |
| XenoPort, Inc. (NASDAQ:XNPT) | 13 | 0 | 0 |
| Novavax, Inc. (NASDAQ:NVAX) | 7 | 1 | 1 |
With the returns exhibited by the aforementioned studies, everyday investors must always monitor hedge fund and insider trading sentiment, and Albany Molecular Research, Inc. (NASDAQ:AMRI) shareholders fit into this picture quite nicely.
