AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) was in 9 hedge funds' portfolio at the end of the first quarter of 2013. AVEO investors should pay attention to an increase in enthusiasm from smart money recently. There were 7 hedge funds in our database with AVEO holdings at the end of the previous quarter.
In today’s marketplace, there are a multitude of gauges shareholders can use to watch the equity markets. Some of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the S&P 500 by a very impressive margin (see just how much).
Equally as important, optimistic insider trading sentiment is another way to break down the investments you're interested in. As the old adage goes: there are a variety of motivations for a corporate insider to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).
With these "truths" under our belt, we're going to take a glance at the latest action surrounding AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO).
In preparation for this quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of 29% from the previous quarter. With hedgies' capital changing hands, there exists a few key hedge fund managers who were increasing their stakes significantly.
According to our comprehensive database, Jerome Pfund and Michael Sjostrom's Sectoral Asset Management had the most valuable position in AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), worth close to $38.1 million, comprising 1.2% of its total 13F portfolio. Coming in second is Seth Klarman of Baupost Group, with a $36 million position; 1.2% of its 13F portfolio is allocated to the stock. Remaining hedgies with similar optimism include William Leland Edwards's Palo Alto Investors, Julian Baker and Felix Baker's Baker Bros. Advisors and Jim Simons's Renaissance Technologies.
As industrywide interest jumped, specific money managers were breaking ground themselves. Palo Alto Investors, managed by William Leland Edwards, created the biggest position in AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO). Palo Alto Investors had 6.4 million invested in the company at the end of the quarter. Julian Baker and Felix Baker's Baker Bros. Advisors also initiated a $3.8 million position during the quarter. The following funds were also among the new AVEO investors: Israel Englander's Millennium Management and James E. Flynn's Deerfield Management.
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last 180-day time frame, AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) has experienced 4 unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO). These stocks are 3SBio Inc. (ADR) (NASDAQ:SSRX), Osiris Therapeutics, Inc. (NASDAQ:OSIR), Vical Incorporated (NASDAQ:VICL), Obagi Medical Products, Inc. (NASDAQ:OMPI), and Cambrex Corporation (NYSE:CBM). This group of stocks are in the biotechnology industry and their market caps resemble AVEO's market cap.