Do Hedge Funds and Insiders Love Seattle Genetics, Inc. (SGEN)?

Page 1 of 2

Is Seattle Genetics, Inc. (NASDAQ:SGEN) a healthy stock for your portfolio? The smart money is in a pessimistic mood. The number of long hedge fund positions decreased by 1 lately.

If you’d ask most investors, hedge funds are seen as underperforming, old investment vehicles of the past. While there are more than 8000 funds with their doors open at present, we look at the masters of this club, close to 450 funds. Most estimates calculate that this group controls most of all hedge funds’ total asset base, and by paying attention to their best picks, we have revealed a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year 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 24 percentage points in 7 months (see the details here).

Seattle Genetics, Inc. (NASDAQ:SGEN)

Just as important, bullish insider trading activity is another way to break down the world of equities. As the old adage goes: there are plenty of motivations for an insider to get rid of shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this tactic if “monkeys” know where to look (learn more here).

Consequently, let’s take a gander at the latest action surrounding Seattle Genetics, Inc. (NASDAQ:SGEN).

How have hedgies been trading Seattle Genetics, Inc. (NASDAQ:SGEN)?

Heading into 2013, a total of 8 of the hedge funds we track were bullish in this stock, a change of -11% from the third quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes considerably.

According to our comprehensive database, Julian Baker and Felix Baker’s Baker Bros. Advisors had the biggest position in Seattle Genetics, Inc. (NASDAQ:SGEN), worth close to $447.7 million, comprising 11.7% of its total 13F portfolio. Coming in second is Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $10.1 million position; 0.4% of its 13F portfolio is allocated to the company. Other peers that hold long positions include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.

Judging by the fact that Seattle Genetics, Inc. (NASDAQ:SGEN) has experienced falling interest from the smart money, it’s easy to see that there lies a certain “tier” of fund managers who sold off their positions entirely heading into 2013. At the top of the heap, Richard Driehaus’s Driehaus Capital dumped the biggest investment of the 450+ funds we track, valued at close to $3.5 million in stock.. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.2 million worth. These moves are important to note, as total hedge fund interest was cut by 1 funds heading into 2013.

What do corporate executives and insiders think about Seattle Genetics, Inc. (NASDAQ:SGEN)?

Insider purchases made by high-level executives is at its handiest when the company in focus has experienced transactions within the past six months. Over the last half-year time period, Seattle Genetics, Inc. (NASDAQ:SGEN) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Seattle Genetics, Inc. (NASDAQ:SGEN). These stocks are Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), Incyte Corporation (NASDAQ:INCY), Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ), Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), and Medivation Inc (NASDAQ:MDVN). All of these stocks are in the biotechnology industry and their market caps are similar to SGEN’s market cap.

Page 1 of 2

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 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

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

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!