Is Mylan Inc. (MYL) Going to Burn These Hedge Funds?

Mylan Inc. (NASDAQ:MYL) was in 27 hedge funds’ portfolio at the end of March. MYL shareholders have witnessed a decrease in enthusiasm from smart money of late. There were 33 hedge funds in our database with MYL holdings at the end of the previous quarter.

To the average investor, there are many metrics shareholders can use to analyze Mr. Market. Some of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outperform the broader indices by a significant amount (see just how much).

Equally as beneficial, positive insider trading activity is another way to break down the financial markets. There are lots of reasons for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this tactic if investors understand what to do (learn more here).

Consequently, we’re going to take a gander at the latest action surrounding Mylan Inc. (NASDAQ:MYL).

Hedge fund activity in Mylan Inc. (NASDAQ:MYL)

In preparation for this quarter, a total of 27 of the hedge funds we track were bullish in this stock, a change of -18% from one quarter earlier. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their holdings significantly.

According to our comprehensive database, Paulson & Co, managed by John Paulson, holds the most valuable position in Mylan Inc. (NASDAQ:MYL). Paulson & Co has a $523 million position in the stock, comprising 3% of its 13F portfolio. Coming in second is Jerome Pfund and Michael Sjostrom of Sectoral Asset Management, with a $141 million position; 4.3% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Samuel Isaly’s OrbiMed Advisors, Jim Simons’s Renaissance Technologies and Martin D. Sass’s MD Sass.

Seeing as Mylan Inc. (NASDAQ:MYL) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few hedgies that decided to sell off their full holdings last quarter. It’s worth mentioning that D. E. Shaw’s D E Shaw dumped the biggest position of the 450+ funds we monitor, totaling about $143.3 million in stock.. John Kleinheinz’s fund, Kleinheinz Capital Partners, also cut its stock, about $19.5 million worth. These transactions are interesting, as total hedge fund interest dropped by 6 funds last quarter.

How are insiders trading Mylan Inc. (NASDAQ:MYL)?

Insider buying is most useful when the company in focus has seen transactions within the past half-year. Over the last 180-day time period, Mylan Inc. (NASDAQ:MYL) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Mylan Inc. (NASDAQ:MYL). These stocks are Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), Akorn, Inc. (NASDAQ:AKRX), Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP), and Actavis Inc (NYSE:ACT). This group of stocks belong to the drugs – generic industry and their market caps are closest to MYL’s market cap.