Is Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) the right pick for your portfolio? Money managers are buying. The number of bullish hedge fund bets improved by 4 lately.
In the 21st century investor’s toolkit, there are dozens of indicators shareholders can use to track Mr. Market. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce their index-focused peers by a significant margin (see just how much).
Just as beneficial, bullish insider trading sentiment is another way to parse down the marketplace. There are a variety of stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if piggybackers know where to look (learn more here).
With these “truths” under our belt, we’re going to take a peek at the key action surrounding Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA).
How have hedgies been trading Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)?
In preparation for this quarter, a total of 19 of the hedge funds we track held long positions in this stock, a change of 27% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, Jacob Gottlieb’s Visium Asset Management had the biggest position in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), worth close to $67.4 million, comprising 1.7% of its total 13F portfolio. Sitting at the No. 2 spot is Scopia Capital, managed by Matt Sirovich and Jeremy Mindich, which held a $50.7 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Other peers with similar optimism include William Leland Edwards’s Palo Alto Investors, Rob Citrone’s Discovery Capital Management and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, some big names were leading the bulls’ herd. Discovery Capital Management, managed by Rob Citrone, assembled the most outsized position in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). Discovery Capital Management had 13.6 million invested in the company at the end of the quarter. Daniel Arbess’s Xerion also made a $8.3 million investment in the stock during the quarter. The other funds with brand new MNTA positions are D. E. Shaw’s D E Shaw, SAC Subsidiary’s Sigma Capital Management, and SAC Subsidiary’s CR Intrinsic Investors.
How are insiders trading Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time frame, Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
With the results shown by the aforementioned tactics, retail investors should always watch hedge fund and insider trading sentiment, and Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) applies perfectly to this mantra.