Enzon Pharmaceuticals, Inc. (ENZN): Are Hedge Funds Right About This Stock?

Page 1 of 2

Is Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) a buy, sell, or hold? The best stock pickers are taking a bearish view. The number of long hedge fund positions dropped by 4 lately.

If you’d ask most traders, hedge funds are seen as unimportant, old financial tools of yesteryear. While there are greater than 8000 funds trading at present, we look at the top tier of this club, about 450 funds. It is widely believed that this group oversees the majority of the smart money’s total asset base, and by tracking their top picks, we have come up with a few investment strategies that have historically outpaced the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum 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 trumped the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).

Just as key, optimistic insider trading sentiment is a second way to parse down the stock market universe. There are plenty of reasons for an upper level exec to downsize shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the valuable potential of this tactic if investors understand what to do (learn more here).

Keeping this in mind, let’s take a peek at the recent action encompassing Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN).

How have hedgies been trading Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN)?

At the end of the fourth quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -29% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.

Of the funds we track, Seth Klarman’s Baupost Group had the most valuable position in Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN), worth close to $34.8 million, comprising 1.1% of its total 13F portfolio. Sitting at the No. 2 spot is ICAHN CAPITAL Carl IcahnCarl Icahn of Icahn Capital LP, with a $26.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Michael Price’s MFP Investors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Judging by the fact that Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) has faced falling interest from the smart money, logic holds that there was a specific group of funds who sold off their full holdings in Q4. Interestingly, David Cohen and Harold Levy’s Iridian Asset Management dropped the largest stake of the 450+ funds we monitor, totaling about $9.8 million in stock.. Jean-Marie Eveillard’s fund, First Eagle Investment Management, also sold off its stock, about $3.4 million worth. These moves are interesting, as total hedge fund interest dropped by 4 funds in Q4.

What have insiders been doing with Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN)?

Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN). These stocks are Cempra Inc (NASDAQ:CEMP), Cytokinetics, Inc. (NASDAQ:CYTK), ShangPharma Corp (ADR) (NYSE:SHP), Durata Therapeutics Inc (NASDAQ:DRTX), and OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI). This group of stocks are the members of the biotechnology industry and their market caps are closest to ENZN’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 Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!