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Hedge Funds Are Buying Bristol Myers Squibb Co. (BMY)

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Who’s buying Bristol Myers Squibb Co. (NYSE:BMY)?

In the eyes of many of your peers, hedge funds are perceived as useless, outdated financial tools of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open today, this site aim at the top tier of this group, close to 525 funds. It is assumed that this group controls the majority of the hedge fund industry’s total assets, and by watching their highest performing stock picks, we’ve formulated a few investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped 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 beaten the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).

Equally as crucial, positive insider trading sentiment is another way to analyze the stock market universe. Obviously, there are plenty of incentives for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if piggybackers know what to do (learn more here).

Now that that’s out of the way, we’re going to study the latest info about Bristol Myers Squibb Co. (NYSE:BMY).

How have hedgies been trading Bristol Myers Squibb Co. (NYSE:BMY)?

At Q2’s end, a total of 43 of the hedge funds we track were bullish in this stock, a change of 30% from the first quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes substantially.

Bristol Myers Squibb Co. (NYSE:BMY)Out of the hedge funds we follow, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in Bristol Myers Squibb Co. (NYSE:BMY), worth close to $448.5 million, comprising 1.4% of its total 13F portfolio. Coming in second is Jim Simons of Renaissance Technologies, with a $381.2 million position; the fund has 1% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Samuel Isaly’s OrbiMed Advisors, David Harding’s Winton Capital Management and Mario Gabelli’s GAMCO Investors.

Now, certain money managers have been driving this bullishness. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the largest position in Bristol Myers Squibb Co. (NYSE:BMY). Adage Capital Management had 448.5 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $381.2 million position during the quarter. The following funds were also among the new BMY investors: Samuel Isaly’s OrbiMed Advisors, David Harding’s Winton Capital Management, and Mario Gabelli’s GAMCO Investors.

What have insiders been doing with Bristol Myers Squibb Co. (NYSE:BMY)?

Legal insider trading, particularly when it’s bullish, is particularly usable when the company in question has experienced transactions within the past six months. Over the latest six-month time frame, Bristol Myers Squibb Co. (NYSE:BMY) has seen zero unique insiders purchasing, and 12 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Bristol Myers Squibb Co. (NYSE:BMY). These stocks are Merck & Co., Inc. (NYSE:MRK), GlaxoSmithKline plc (ADR) (NYSE:GSK), AstraZeneca plc (ADR) (NYSE:AZN), Eli Lilly & Co. (NYSE:LLY), and AbbVie Inc (NYSE:ABBV). This group of stocks belong to the drug manufacturers – major industry and their market caps are closest to BMY’s market cap.

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