We, at Insider Monkey, have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Flamel Technologies S.A. (ADR) (NASDAQ:FLML).
Is Flamel Technologies S.A. (ADR) (NASDAQ:FLML) worth your attention right now? Money managers are reducing their bets on the stock. The number of bullish hedge fund positions were cut by 4 recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Intersect ENT Inc (NASDAQ:XENT), Eastman Kodak Co. (NYSE:KODK), and Cincinnati Bell Inc. (NYSE:CBB) to gather more data points.
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At the moment, there are tons of formulas market participants put to use to evaluate stocks. A couple of the most useful formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the best investment managers can trounce the broader indices by a healthy margin (see the details here).
With all of this in mind, we’re going to take a peek at the latest action encompassing Flamel Technologies S.A. (ADR) (NASDAQ:FLML).
How are hedge funds trading Flamel Technologies S.A. (ADR) (NASDAQ:FLML)?
At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 24% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Kevin Kotler’s Broadfin Capital has the largest position in Flamel Technologies S.A. (ADR) (NASDAQ:FLML), worth close to $71.7 million, accounting for 4% of its total 13F portfolio. Coming in second is James E. Flynn of Deerfield Management, with a $66.4 million position; 2.6% of its 13F portfolio is allocated to the company. Remaining members of the smart money that are bullish contain George McCabe’s Portolan Capital Management, Anders Hove and Bong Koh’s VHCP Management, and Ken Greenberg and David Kim’s Ghost Tree Capital.
Seeing as Flamel Technologies S.A. (ADR) (NASDAQ:FLML) has faced a falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that decided to sell off their full holdings in the third quarter. At the top of the heap, Behzad Aghazadeh’s venBio Select Advisor cut the biggest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $5.7 million in stock. Thomas Bailard’s fund, Bailard Inc, also dumped its stock, about $3.3 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 4 funds in the third quarter.
Let’s also examine hedge fund activity in other stocks similar to Flamel Technologies S.A. (ADR) (NASDAQ:FLML). These stocks are Intersect ENT Inc (NASDAQ:XENT), Eastman Kodak Co. (NYSE:KODK), Cincinnati Bell Inc. (NYSE:CBB), and NII Holdings, Inc. (NASDAQ:NIHD). This group of stocks’ market valuations is closest to Flamel Technologies S.A. (ADR) (NASDAQ:FLML)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| XENT | 16 | 57623 | -7 |
| KODK | 11 | 183081 | -2 |
| CBB | 15 | 60961 | 4 |
| NIHD | 8 | 83951 | 8 |
As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $190 million in Flamel Technologies S.A. (ADR) (NASDAQ:FLML)’s case. Intersect ENT Inc (NASDAQ:XENT) is the most popular stock in this table. On the other hand, NII Holdings, Inc. (NASDAQ:NIHD) is the least popular one with only 8 bullish hedge fund positions. Flamel Technologies S.A. (ADR) (NASDAQ:FLML) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Flamel Technologies S.A. (ADR) (NASDAQ:FLML) might be a better candidate to consider a long position.
