Is Mylan Inc. (NASDAQ:MYL) undervalued? The smart money is getting more optimistic. The number of bullish hedge fund positions went up by 9 lately.
At the moment, there are a multitude of methods investors can use to monitor publicly traded companies. A couple of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can trounce the market by a very impressive amount (see just how much).
Equally as key, optimistic insider trading activity is another way to parse down the financial markets. As the old adage goes: there are plenty of stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).
With all of this in mind, it's important to take a gander at the latest action surrounding Mylan Inc. (NASDAQ:MYL).
At year's end, a total of 31 of the hedge funds we track held long positions in this stock, a change of 41% from the third quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, Paulson & Co, managed by John Paulson, holds the biggest position in Mylan Inc. (NASDAQ:MYL). Paulson & Co has a $673 million billion position in the stock, comprising 4.1% of its 13F portfolio. On Paulson & Co's heels is Sectoral Asset Management, managed by Jérôme Pfund and Michael Sjöström, which held a $148 million position; 2.6% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include D. E. Shaw's D E Shaw, Samuel Isaly's OrbiMed Advisors and Steven Cohen's SAC Capital Advisors.
As industrywide interest jumped, some big names have been driving this bullishness. OrbiMed Advisors, managed by Samuel Isaly, assembled the largest position in Mylan Inc. (NASDAQ:MYL). OrbiMed Advisors had 83 million invested in the company at the end of the quarter. also initiated a $14 million position during the quarter. The following funds were also among the new MYL investors: Jim Simons's Renaissance Technologies, Ken Heebner's Capital Growth Management, and Brian Ashford-Russell and Tim Woolley's Polar Capital.
Insider buying is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last 180-day time frame, Mylan Inc. (NASDAQ:MYL) has experienced zero unique insiders purchasing, and 9 insider sales (see the details of insider trades here).
With the returns shown by Insider Monkey's studies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Mylan Inc. (NASDAQ:MYL) applies perfectly to this mantra.
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