Hedge Funds Are Crazy About Sequenom, Inc. (NASDAQ:SQNM)

Sequenom, Inc. (NASDAQ:SQNM) was in 15 hedge funds’ portfolio at the end of December. SQNM shareholders have witnessed an increase in hedge fund sentiment lately. There were 14 hedge funds in our database with SQNM positions at the end of the previous quarter.

Sequenom, Inc. (NASDAQ:SQNM)

To the average investor, there are a multitude of methods shareholders can use to track the equity markets. A pair of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the market by a solid amount (see just how much).

Equally as important, positive insider trading activity is another way to parse down the stock market universe. Just as you’d expect, there are many incentives for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if shareholders understand where to look (learn more here).

With these “truths” under our belt, let’s take a peek at the latest action encompassing Sequenom, Inc. (NASDAQ:SQNM).

Hedge fund activity in Sequenom, Inc. (NASDAQ:SQNM)

At year’s end, a total of 15 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Sectoral Asset Management, managed by Jérôme Pfund and Michael Sjöström, holds the most valuable position in Sequenom, Inc. (NASDAQ:SQNM). Sectoral Asset Management has a $43 million position in the stock, comprising 1.5% of its 13F portfolio. On Sectoral Asset Management’s heels is William Leland Edwards of Palo Alto Investors, with a $35 million position; the fund has 4.1% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Samuel Isaly’s OrbiMed Advisors, Steven Cohen’s SAC Capital Advisors and SAC Subsidiary’s CR Intrinsic Investors.

As aggregate interest increased, key hedge funds were breaking ground themselves. Royce & Associates, managed by Chuck Royce, created the biggest position in Sequenom, Inc. (NASDAQ:SQNM). Royce & Associates had 4 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also made a $0 million investment in the stock during the quarter. The only other fund with a new position in the stock is Neil Chriss’s Hutchin Hill Capital.

How are insiders trading Sequenom, Inc. (NASDAQ:SQNM)?

Insider buying is best served when the company we’re looking at has seen transactions within the past half-year. Over the latest 180-day time period, Sequenom, Inc. (NASDAQ:SQNM) has seen 2 unique insiders buying, and zero insider sales (see the details of insider trades here).

With the returns shown by the aforementioned strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Sequenom, Inc. (NASDAQ:SQNM) is no exception.

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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