Is Cerus Corporation (NASDAQ:CERS) a buy, sell, or hold? Prominent investors are turning bullish. The number of long hedge fund positions advanced by 1 recently.
To most traders, hedge funds are viewed as slow, outdated investment tools of the past. While there are greater than 8000 funds in operation at present, we look at the leaders of this club, about 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total capital, and by keeping an eye on their best picks, we have revealed a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).
Just as beneficial, bullish insider trading sentiment is a second way to break down the stock market universe. Obviously, there are lots of stimuli for a bullish insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the impressive potential of this strategy if “monkeys” know where to look (learn more here).
With all of this in mind, it’s important to take a look at the key action surrounding Cerus Corporation (NASDAQ:CERS).
What have hedge funds been doing with Cerus Corporation (NASDAQ:CERS)?
Heading into 2013, a total of 6 of the hedge funds we track were bullish in this stock, a change of 20% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings considerably.
With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, initiated the largest position in Cerus Corporation (NASDAQ:CERS). Citadel Investment Group had 0.1 million invested in the company at the end of the quarter.
Insider trading activity in Cerus Corporation (NASDAQ:CERS)
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, Cerus Corporation (NASDAQ:CERS) has seen 2 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Cerus Corporation (NASDAQ:CERS). These stocks are Curis, Inc. (NASDAQ:CRIS), Repros Therapeutics Inc (NASDAQ:RPRX), Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX), XOMA Corp (NASDAQ:XOMA), and Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS). All of these stocks are in the biotechnology industry and their market caps resemble CERS’s market cap.