Hedge Funds Sour Slightly On Insmed Incorporated (INSM), But Remain Overweight

The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Insmed Incorporated (NASDAQ:INSM).

Insmed Incorporated (NASDAQ:INSM) has seen a decrease in activity from the world’s largest hedge funds of late. 14 hedge funds that we track were long the stock on September 30. There were 17 hedge funds in our database with INSM positions at the end of the second quarter. 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 Community Trust Bancorp, Inc. (NASDAQ:CTBI), Kronos Worldwide, Inc. (NYSE:KRO), and Renren Inc (NYSE:RENN) to gather more data points.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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Hedge fund activity in Insmed Incorporated (NASDAQ:INSM)

At Q3’s end, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, an 18% drop from one quarter earlier, after three quarters of almost no activity in the stock. The graph below displays the number of hedge funds with bullish position in INSM over the last 5 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, OrbiMed Advisors, led by Samuel Isaly, holds the largest position in Insmed Incorporated (NASDAQ:INSM). OrbiMed Advisors has a $76.2 million position in the stock. The second largest stake is held by William Leland Edwards of Palo Alto Investors, with a $73.9 million position; the fund has 4.3% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompass Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management, and Kris Jenner, Gordon Bussard, and Graham McPhail’s Rock Springs Capital Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.