Is Albany Molecular Research, Inc. (NASDAQ:AMRI) the right investment to pursue these days? Investors who are in the know are in an optimistic mood. The number of bullish hedge fund bets improved by 2 recently.
If you’d ask most shareholders, hedge funds are perceived as underperforming, outdated investment tools of the past. While there are more than 8000 funds with their doors open today, we at Insider Monkey look at the leaders of this group, around 450 funds. It is estimated that this group oversees the lion’s share of all hedge funds’ total capital, and by paying attention to their top investments, we have figured out a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).
Just as key, optimistic insider trading sentiment is another way to break down the world of equities. Obviously, there are many incentives for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if investors understand where to look (learn more here).
Now, we’re going to take a look at the key action regarding Albany Molecular Research, Inc. (NASDAQ:AMRI).
Hedge fund activity in Albany Molecular Research, Inc. (NASDAQ:AMRI)
At the end of the fourth quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 25% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes considerably.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Albany Molecular Research, Inc. (NASDAQ:AMRI). Royce & Associates has a $8 million position in the stock, comprising 0% of its 13F portfolio. On Royce & Associates’s heels is Visium Asset Management, managed by Jacob Gottlieb, which held a $5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other peers with similar optimism include John W. Rogers’s Ariel Investments, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.
Consequently, key money managers have jumped into Albany Molecular Research, Inc. (NASDAQ:AMRI) headfirst. AQR Capital Management, managed by Cliff Asness, established the most valuable position in Albany Molecular Research, Inc. (NASDAQ:AMRI). AQR Capital Management had 0 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also initiated a $0 million position during the quarter. The only other fund with a brand new AMRI position is Steven Cohen’s SAC Capital Advisors.
What do corporate executives and insiders think about Albany Molecular Research, Inc. (NASDAQ:AMRI)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past 180 days. Over the last half-year time frame, Albany Molecular Research, Inc. (NASDAQ:AMRI) has seen 2 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Albany Molecular Research, Inc. (NASDAQ:AMRI). These stocks are Osiris Therapeutics, Inc. (NASDAQ:OSIR), 3SBio Inc. (ADR) (NASDAQ:SSRX), PROLOR Biotech Inc (NYSEAMEX:PBTH), XenoPort, Inc. (NASDAQ:XNPT), and Novavax, Inc. (NASDAQ:NVAX). This group of stocks are the members of the biotechnology industry and their market caps are similar to AMRI’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Osiris Therapeutics, Inc. (NASDAQ:OSIR)||1||1||3|
|3SBio Inc. (ADR) (NASDAQ:SSRX)||9||0||0|
|PROLOR Biotech Inc (NYSEAMEX:PBTH)||3||0||0|
|XenoPort, Inc. (NASDAQ:XNPT)||13||0||0|
|Novavax, Inc. (NASDAQ:NVAX)||5||1||0|
With the results demonstrated by our strategies, everyday investors must always watch hedge fund and insider trading activity, and Albany Molecular Research, Inc. (NASDAQ:AMRI) is no exception.