In the financial world, there are many metrics market participants can use to analyze their holdings. A couple of the most useful are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can trounce the S&P 500 by a superb margin (see just how much).
Equally as integral, positive insider trading sentiment is another way to break down the world of equities. Obviously, there are a variety of stimuli for an insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this tactic if investors know what to do (learn more here).
Now, it’s important to take a gander at the latest action surrounding Complete Genomics, Inc. (NASDAQ:GNOM).
How have hedgies been trading Complete Genomics, Inc. (NASDAQ:GNOM)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track were long in this stock, a change of 29% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes significantly.
When looking at the hedgies we track, Cliff Asness’s AQR Capital Management had the most valuable position in Complete Genomics, Inc. (NASDAQ:GNOM), worth close to $7.7 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Carl Tiedemann and Michael Tiedemann of TIG Advisors, with a $3.8 million position; 0.7% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Jean-Marie Eveillard’s First Eagle Investment Management, James Dondero’s Highland Capital Management and Kerr Neilson’s Platinum Asset Management.
As aggregate interest increased, some big names have jumped into Complete Genomics, Inc. (NASDAQ:GNOM) headfirst. TIG Advisors, managed by Carl Tiedemann and Michael Tiedemann, initiated the most outsized position in Complete Genomics, Inc. (NASDAQ:GNOM). TIG Advisors had 3.8 million invested in the company at the end of the quarter. Jean-Marie Eveillard’s First Eagle Investment Management also made a $3.6 million investment in the stock during the quarter. The following funds were also among the new GNOM investors: Israel Englander’s Millennium Management, Jacob Gottlieb’s Visium Asset Management, and D. E. Shaw’s D E Shaw.
Insider trading activity in Complete Genomics, Inc. (NASDAQ:GNOM)
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past half-year. Over the latest half-year time period, Complete Genomics, Inc. (NASDAQ:GNOM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Complete Genomics, Inc. (NASDAQ:GNOM). These stocks are Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), Omeros Corporation (NASDAQ:OMER), Inovio Pharmaceuticals Inc (NYSEAMEX:INO), and BioSpecifics Technologies Corp. (NASDAQ:BSTC). This group of stocks are the members of the biotechnology industry and their market caps resemble GNOM’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) | 6 | 0 | 0 |
| Omeros Corporation (NASDAQ:OMER) | 4 | 3 | 1 |
| Inovio Pharmaceuticals Inc (NYSEAMEX:INO) | 2 | 4 | 1 |
| BioSpecifics Technologies Corp. (NASDAQ:BSTC) | 1 | 1 | 1 |
With the results exhibited by Insider Monkey’s research, everyday investors must always keep an eye on hedge fund and insider trading activity, and Complete Genomics, Inc. (NASDAQ:GNOM) applies perfectly to this mantra.
