Is Affymax, Inc. (NASDAQ:AFFY) the right pick for your portfolio? Hedge funds are becoming less confident. The number of bullish hedge fund bets dropped by 3 in recent months.
In today’s marketplace, there are many metrics investors can use to watch Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat their index-focused peers by a significant margin (see just how much).
Equally as key, bullish insider trading sentiment is another way to break down the world of equities. There are a number of reasons for an executive to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).
With all of this in mind, let’s take a gander at the recent action encompassing Affymax, Inc. (NASDAQ:AFFY).
How have hedgies been trading Affymax, Inc. (NASDAQ:AFFY)?
At the end of the fourth quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of -18% 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 holdings meaningfully.
When looking at the hedgies we track, OrbiMed Advisors, managed by Samuel Isaly, holds the most valuable position in Affymax, Inc. (NASDAQ:AFFY). OrbiMed Advisors has a $48.9 million position in the stock, comprising 1.5% of its 13F portfolio. On OrbiMed Advisors’s heels is Jacob Gottlieb of Visium Asset Management, with a $39.4 million position; 1.4% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.
Judging by the fact that Affymax, Inc. (NASDAQ:AFFY) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few hedgies who sold off their positions entirely in Q4. At the top of the heap, Jim Simons’s Renaissance Technologies said goodbye to the biggest investment of all the hedgies we key on, comprising an estimated $3.3 million in stock., and Joseph Edelman of Perceptive Advisors was right behind this move, as the fund said goodbye to about $1.9 million worth. These moves are interesting, as total hedge fund interest dropped by 3 funds in Q4.
What do corporate executives and insiders think about Affymax, Inc. (NASDAQ:AFFY)?
Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time period, Affymax, Inc. (NASDAQ:AFFY) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Affymax, Inc. (NASDAQ:AFFY). These stocks are Northwest Biotherapeutics, Inc (NASDAQ:NWBO), Celsion Corporation (NASDAQ:CLSN), Imprimis Pharmaceuticals Inc (NASDAQ:IMMY), NuPathe Inc (NASDAQ:PATH), and Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC). This group of stocks belong to the biotechnology industry and their market caps are closest to AFFY’s market cap.
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| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Northwest Biotherapeutics, Inc (NASDAQ:NWBO) | 1 | 1 | 0 |
| Celsion Corporation (NASDAQ:CLSN) | 5 | 4 | 1 |
| Imprimis Pharmaceuticals Inc (NASDAQ:IMMY) | 0 | 0 | |
| NuPathe Inc (NASDAQ:PATH) | 2 | 0 | 1 |
| Cyclacel Pharmaceuticals Inc (NASDAQ:CYCC) | 2 | 0 | 0 |
With the results shown by Insider Monkey’s time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Affymax, Inc. (NASDAQ:AFFY) applies perfectly to this mantra.
