Do Hedge Funds and Insiders Love Geron Corporation (GERN)?

Is Geron Corporation (NASDAQ:GERN) a healthy stock for your portfolio? Money managers are in an optimistic mood. The number of long hedge fund bets moved up by 2 lately.

According to most stock holders, hedge funds are perceived as underperforming, old investment vehicles of the past. While there are more than 8000 funds trading at present, we at Insider Monkey look at the upper echelon of this group, close to 450 funds. It is widely believed that this group oversees most of the hedge fund industry’s total asset base, and by monitoring their top investments, we have found a few investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).

Geron Corporation (NASDAQ:GERN)Just as important, positive insider trading activity is another way to break down the financial markets. There are a variety of reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).

Keeping this in mind, it’s important to take a glance at the latest action regarding Geron Corporation (NASDAQ:GERN).

What have hedge funds been doing with Geron Corporation (NASDAQ:GERN)?

In preparation for this year, a total of 7 of the hedge funds we track held long positions in this stock, a change of 40% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably.

As aggregate interest increased, specific money managers have jumped into Geron Corporation (NASDAQ:GERN) headfirst. Baker Bros. Advisors, managed by Julian Baker and Felix Baker, established the most valuable position in Geron Corporation (NASDAQ:GERN). Baker Bros. Advisors had 1.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a <$1 million investment in the stock during the quarter. The only other fund with a brand new GERN position is Steven Cohen’s SAC Capital Advisors.

What have insiders been doing with Geron Corporation (NASDAQ:GERN)?

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Geron Corporation (NASDAQ:GERN) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Geron Corporation (NASDAQ:GERN). These stocks are ZIOPHARM Oncology Inc. (NASDAQ:ZIOP), Targacept , Inc. (NASDAQ:TRGT), Pacific Biosciences of California (NASDAQ:PACB), Chelsea Therapeutics International Ltd. (NASDAQ:CHTP), and ImmunoCellular Therapeutics Ltd (NYSEAMEX:IMUC). This group of stocks belong to the biotechnology industry and their market caps are similar to GERN’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) 6 1 0
Targacept , Inc. (NASDAQ:TRGT) 10 3 0
Pacific Biosciences of California (NASDAQ:PACB) 7 1 0
Chelsea Therapeutics International Ltd. (NASDAQ:CHTP) 3 0 1
ImmunoCellular Therapeutics Ltd (NYSEAMEX:IMUC) 2 0 1

With the returns exhibited by the aforementioned research, retail investors should always pay attention to hedge fund and insider trading activity, and Geron Corporation (NASDAQ:GERN) applies perfectly to this mantra.

Click here to learn why you should track hedge funds

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!