Is Amicus Therapeutics, Inc. (NASDAQ:FOLD) a good investment?
Now, according to many investors, hedge funds are assumed to be overrated, outdated investment tools of an era lost to time. Although there are In excess of 8,000 hedge funds trading currently, Insider Monkey focuses on the leaders of this group, around 525 funds. It is assumed that this group oversees the lion’s share of the hedge fund industry’s total assets, and by paying attention to their best equity investments, we’ve come up with a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Equally as crucial, positive insider trading sentiment is another way to analyze the financial markets. There are a number of incentives for a corporate insider to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this method if you know what to do (learn more here).
Keeping this in mind, it’s important to examine the newest info for Amicus Therapeutics, Inc. (NASDAQ:FOLD).
How are hedge funds trading Amicus Therapeutics, Inc. (NASDAQ:FOLD)?
In preparation for the third quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 8% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly.
As one would understandably expect, certain bigger names have been driving this bullishness. Palo Alto Investors, managed by William Leland Edwards, initiated the biggest position in Amicus Therapeutics, Inc. (NASDAQ:FOLD). Palo Alto Investors had 10.8 million invested in the company at the end of the quarter. Jeremy Green’s Redmile Group also made a $5.5 million investment in the stock during the quarter. The following funds were also among the new FOLD investors: Chuck Royce’s Royce & Associates, Anthony Giammalva’s Sound Energy Partners, and Julian Baker and Felix Baker’s Baker Bros. Advisors.
What do corporate executives and insiders think about Amicus Therapeutics, Inc. (NASDAQ:FOLD)?
Legal insider trading, particularly when it’s bullish, is most useful when the company in question has experienced transactions within the past 180 days. Over the last half-year time period, Amicus Therapeutics, Inc. (NASDAQ:FOLD) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Amicus Therapeutics, Inc. (NASDAQ:FOLD). These stocks are Cytokinetics, Inc. (NASDAQ:CYTK), ArQule, Inc. (NASDAQ:ARQL), ZIOPHARM Oncology Inc. (NASDAQ:ZIOP), Pain Therapeutics, Inc. (NASDAQ:PTIE), and BioDelivery Sciences International, Inc. (NASDAQ:BDSI). This group of stocks are in the biotechnology industry and their market caps are closest to FOLD’s market cap.
