Does Synergy Pharmaceuticals Inc (NASDAQ:SGYP) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.
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Our calculations show that Synergy Pharmaceuticals Inc investors should be aware of the stagnancy in enthusiasm from smart money lately. SGYP was in 31 hedge funds’ portfolio at the end of the third quarter of 2015. There were also 31 hedge funds in our database with SGYP positions at the end of June. At the end of this article we will also compare SGYP to other stocks including Veritiv Corp (NYSE:VRTV), Unisys Corporation (NYSE:UIS), and Monmouth R.E. Inv. Corp. (NYSE:MNR) to get a better idea about its popularity.
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What does the smart money think about Synergy Pharmaceuticals Inc (NASDAQ:SGYP)?
Heading into Q4, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. 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 stakes substantially.
According to our database, John Paulson’s Paulson & Co had the most valuable position in Synergy Pharmaceuticals Inc (NASDAQ:SGYP), worth close to $47.7 million, accounting for 0.2% of its total 13F portfolio. Coming in second is Ken Griffin of Citadel Investment Group, with a $20.7 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions consist of Israel Englander’s Millennium Management, Samuel Isaly’s OrbiMed Advisors and Jeffrey Jay and David Kroin’s Great Point Partners.
Because Synergy Pharmaceuticals Inc (NASDAQ:SGYP) has experienced slightly bearish sentiment from the smart money, it’s safe to say that there were a few money managers that elected to cut their full holdings last quarter. Intriguingly, billionaire James Dinan’s York Capital Management sold off the largest position of the 700 funds watched by Insider Monkey, comprising about $15.4 million in stock. Roberto Mignone’s fund, Bridger Management, also dropped its stock, about $7 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also review hedge fund activity in other stocks similar to Synergy Pharmaceuticals Inc (NASDAQ:SGYP). These stocks are Veritiv Corp (NYSE:VRTV), Unisys Corporation (NYSE:UIS), Monmouth R.E. Inv. Corp. (NYSE:MNR), and Matrix Service Co (NASDAQ:MTRX). This group of stocks’ market caps are similar to SGYP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| VRTV | 9 | 122125 | -1 |
| UIS | 13 | 96457 | -3 |
| MNR | 8 | 23166 | -1 |
| MTRX | 14 | 81195 | 1 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $81 million. Matrix Service Co (NASDAQ:MTRX) is the most popular stock in this table. On the other hand Monmouth R.E. Inv. Corp. (NYSE:MNR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is more popular among hedge funds. Another bullish signal is that collectively hedge funds are overweight this stock and owned more than 20% of its outstanding shares. Considering that hedge funds are fond of this stock, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
