Do Hedge Funds and Insiders Love Sequenom, Inc. (SQNM)?

Page 1 of 2

Is it smart to be bullish on Sequenom, Inc. (NASDAQ:SQNM)?

If you were to ask many traders, hedge funds are seen as useless, outdated investment vehicles of a period lost to current times. Although there are over 8,000 hedge funds in operation in present day, this site focuses on the leaders of this group, close to 525 funds. It is widely held that this group has its hands on most of all hedge funds’ total capital, and by paying attention to their best stock picks, we’ve spotted a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a 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 outperformed the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Just as useful, optimistic insider trading sentiment is a second way to analyze the world of equities. As the old adage goes: there are a variety of incentives for an upper level exec to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this strategy if shareholders understand where to look (learn more here).

Sequenom, Inc. (NASDAQ:SQNM)

What’s more, let’s analyze the newest info surrounding Sequenom, Inc. (NASDAQ:SQNM).

What does the smart money think about Sequenom, Inc. (NASDAQ:SQNM)?

In preparation for the third quarter, a total of 16 of the hedge funds we track were long in this stock, a change of -6% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly.

When using filings from the hedgies we track, William Leland Edwards’s Palo Alto Investors had the biggest position in Sequenom, Inc. (NASDAQ:SQNM), worth close to $34.5 million, comprising 4.1% of its total 13F portfolio. Sitting at the No. 2 spot is SAC Subsidiary of CR Intrinsic Investors, with a $25.6 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management, Steven Cohen’s SAC Capital Advisors and Samuel Isaly’s OrbiMed Advisors.

As Sequenom, Inc. (NASDAQ:SQNM) has faced dropping sentiment from the top-tier hedge fund industry, logic holds that there exists a select few fund managers who sold off their full holdings in Q1. At the top of the heap, Peter Kolchinsky’s RA Capital Management dumped the biggest position of the “upper crust” of funds we key on, totaling about $14.7 million in stock. Scott Burney’s fund, Bluefin Investment Management, also said goodbye to its stock, about $10.1 million worth. These moves are interesting, as aggregate hedge fund interest fell by 1 funds in Q1.

How are insiders trading Sequenom, Inc. (NASDAQ:SQNM)?

Insider buying made by high-level executives is best served when the company in question has seen transactions within the past half-year. Over the last half-year time frame, Sequenom, Inc. (NASDAQ:SQNM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll go over the relationship between both of these indicators in other stocks similar to Sequenom, Inc. (NASDAQ:SQNM). These stocks are ChemoCentryx Inc (NASDAQ:CCXI), Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI), Hyperion Therapeutics Inc (NASDAQ:HPTX), Emergent Biosolutions Inc (NYSE:EBS), and Idenix Pharmaceuticals Inc (NASDAQ:IDIX). This group of stocks are in the biotechnology industry and their market caps are closest to SQNM’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure 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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!