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Hedge Funds Are Betting On Infinity Pharmaceuticals Inc. (NASDAQ:INFI)

Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has experienced an increase in enthusiasm from smart money of late.

At the moment, there are tons of metrics market participants can use to watch their holdings. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outpace the broader indices by a healthy amount (see just how much).

Equally as important, optimistic insider trading activity is another way to parse down the investments you’re interested in. Obviously, there are plenty of stimuli for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would buy. Various empirical studies have demonstrated the impressive potential of this tactic if piggybackers know what to do (learn more here).

With these “truths” under our belt, let’s take a glance at the latest action regarding Infinity Pharmaceuticals Inc. (NASDAQ:INFI).

What have hedge funds been doing with Infinity Pharmaceuticals Inc. (NASDAQ:INFI)?

At the end of the fourth quarter, a total of 22 of the hedge funds we track held long positions in this stock, a change of 38% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.

According to our comprehensive database, OrbiMed Advisors, managed by Samuel Isaly, holds the biggest position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). OrbiMed Advisors has a $111 million position in the stock, comprising 3.4% of its 13F portfolio. On OrbiMed Advisors’s heels is Perceptive Advisors, managed by Joseph Edelman, which held a $89 million position; 1.1% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Daniel Gold’s QVT Financial, Julian Baker and Felix Baker’s Baker Bros. Advisors and Sean Cullinan’s Point State Capital.

As aggregate interest increased, some big names have jumped into Infinity Pharmaceuticals Inc. (NASDAQ:INFI) headfirst. Deerfield Management, managed by James E. Flynn, initiated the most valuable position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). Deerfield Management had 20 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also initiated a $9 million position during the quarter. The following funds were also among the new INFI investors: SAC Subsidiary’s Sigma Capital Management, Samuel Isaly’s OrbiMed Advisors, and Mark Broach’s Manatuck Hill Partners.

How have insiders been trading Infinity Pharmaceuticals Inc. (NASDAQ:INFI)?

Insider buying is most useful when the company in focus has experienced transactions within the past six months. Over the last six-month time frame, Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned research, everyday investors must always keep an eye on hedge fund and insider trading activity, and Infinity Pharmaceuticals Inc. (NASDAQ:INFI) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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