Hedge Fund Were Wrong About Receptos Inc (RCPT) As Celgene Corporation (CELG) Snatches It Up At Premium

Hedge fund activity in Receptos Inc (NASDAQ:RCPT)

As pointed out earlier, hedge fund sentiment was negative, with only 34 hedge fund positions in the stock at the end of the first quarter. There were 38 hedge funds with positions in the stock at the end of fourth quarter of 2014. This indicates that many hedge funds partially sold their stakes in the stock and some hedge funds even bid good bye to the stock completely by selling their entire stake in the company.

Among the hedge funds tracked by Insider Monkey, Viking Global, managed by Andreas Halvorsen, held the largest position in Receptos Inc (NASDAQ:RCPT). Viking Global held 951,078 Receptos shares valued at $156.8 million as of March 31, which accounted for 0.6% of Viking Global’s total 13F portfolio at that time. The second-largest holding in Receptos was by Phill Gross and Robert Atchinson of Adage Capital Management, with 482,979 shares at $79.6 million. This accounted for 0.2% of its 13F portfolio. Other hedgies that were bullish comprise Israel Englander‘s Millennium Management, Bihua Chen’s Cormorant Asset Management, and Jacob Gottlieb’s Visium Asset Management.

Declining interest in the stock by hedge funds might suggest that some hedge funds decided to bid good bye to the stock by selling their entire stake in the company. It’s worth mentioning that Zach Schreiber’s Point State Capital dropped the largest investment of the “upper crust” of funds monitored by Insider Monkey. Zach Schreiber’s hedge fund sold all 385,000 shares of Receptos it previously. Jason Karp of Tourbillon Capital Partners also sold all of his 385,000 Receptos shares in the first quarter, which were valued at $47.2 million as of the end of 2014.

Disclosure: None