Cambrex Corporation (NYSE:CBM) investors should pay attention to a decrease in hedge fund interest of late.
In the 21st century investor’s toolkit, there are tons of gauges shareholders can use to track the equity markets. A couple of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite investment managers can outperform the S&P 500 by a superb margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to parse down the investments you’re interested in. Obviously, there are lots of motivations for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this strategy if you know where to look (learn more here).
With these “truths” under our belt, it’s important to take a peek at the recent action encompassing Cambrex Corporation (NYSE:CBM).
What does the smart money think about Cambrex Corporation (NYSE:CBM)?
At Q1’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of -21% from the first quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes considerably.
According to our comprehensive database, Chuck Royce’s Royce & Associates had the most valuable position in Cambrex Corporation (NYSE:CBM), worth close to $18.2 million, accounting for 0.1% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $8.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Seeing as Cambrex Corporation (NYSE:CBM) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of hedgies who sold off their entire stakes at the end of the first quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dumped the biggest investment of the 450+ funds we track, totaling an estimated $1.6 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund dumped about $0.5 million worth. These moves are interesting, as aggregate hedge fund interest fell by 3 funds at the end of the first quarter.
How have insiders been trading Cambrex Corporation (NYSE:CBM)?
Bullish insider trading is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time period, Cambrex Corporation (NYSE:CBM) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Cambrex Corporation (NYSE:CBM). These stocks are Dyax Corp. (NASDAQ:DYAX), Osiris Therapeutics, Inc. (NASDAQ:OSIR), Vical Incorporated (NASDAQ:VICL), Obagi Medical Products, Inc. (NASDAQ:OMPI), and AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO). This group of stocks belong to the biotechnology industry and their market caps are closest to CBM’s market cap.
