We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) based on that data.
Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) investors should be aware of a decrease in support from the world’s most elite money managers recently. 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 Support.com, Inc. (NASDAQ:SPRT), American Superconductor Corporation (NASDAQ:AMSC), and Vertex Energy Inc (NASDAQ:VTNR) to gather more data points.
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In the financial world, there are dozens of gauges market participants put to use to analyze stocks. A pair of the most innovative gauges are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the elite money managers can trounce their index-focused peers by a significant amount (see the details here).
Keeping this in mind, we’re going to go over the recent action encompassing Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS).
How have hedgies been trading Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)?
At the end of Q3, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 32% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Palo Alto Investors, managed by William Leland Edwards, holds the most valuable position in Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS). Palo Alto Investors has a $5.7 million position in the stock, comprising 0.3% of its 13F portfolio. The second largest stake is held by Great Point Partners, managed by Jeffrey Jay and David Kroin, which holds a $2.6 million position; the fund has 1% of its 13F portfolio invested in the stock. Remaining peers that are bullish encompass Julian Baker and Felix Baker’s Baker Bros. Advisors, Farallon Capital and Mark Lampert’s Biotechnology Value Fund / BVF Inc.
Because Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) has witnessed a falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of fund managers that elected to cut their full holdings heading into Q4. At the top of the heap, Jacob Gottlieb’s Visium Asset Management dropped the biggest stake of the 700 funds followed by Insider Monkey, worth an estimated $10 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also sold off its stock, about $4.2 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 6 funds heading into Q4.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) but similarly valued. These stocks are Support.com, Inc. (NASDAQ:SPRT), American Superconductor Corporation (NASDAQ:AMSC), Vertex Energy Inc (NASDAQ:VTNR), and Bioline RX Ltd (NASDAQ:BLRX). This group of stocks’ market values resembles Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SPRT | 8 | 8134 | 0 |
| AMSC | 6 | 1632 | -2 |
| VTNR | 6 | 3794 | -2 |
| BLRX | 6 | 9675 | -1 |
As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $18 million in Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)’s case. Support.com, Inc. (NASDAQ:SPRT) is the most popular stock in this table. On the other hand, American Superconductor Corporation (NASDAQ:AMSC) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
