Hedge Funds Are Crazy About Synta Pharmaceuticals Corp. (SNTA)

Page 1 of 2

Is Synta Pharmaceuticals Corp. (NASDAQ:SNTA) the right pick for your portfolio? The smart money is buying. The number of long hedge fund bets improved by 2 lately.

In the eyes of most investors, hedge funds are assumed to be underperforming, old financial vehicles of years past. While there are over 8000 funds in operation at the moment, we at Insider Monkey hone in on the masters of this club, about 450 funds. It is widely believed that this group has its hands on the majority of all hedge funds’ total capital, and by tracking their top picks, we have brought to light 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 per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Synta Pharmaceuticals Corp. (NASDAQ:SNTA)Just as key, positive insider trading activity is a second way to parse down the stock market universe. As the old adage goes: there are a number of reasons for an insider to sell shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).

Consequently, we’re going to take a glance at the key action encompassing Synta Pharmaceuticals Corp. (NASDAQ:SNTA).

How are hedge funds trading Synta Pharmaceuticals Corp. (NASDAQ:SNTA)?

At the end of the first quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 17% from the first quarter. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes considerably.

Of the funds we track, Julian Baker and Felix Baker’s Baker Bros. Advisors had the largest position in Synta Pharmaceuticals Corp. (NASDAQ:SNTA), worth close to $12.6 million, comprising 0.3% of its total 13F portfolio. Coming in second is Daniel Gold of QVT Financial, with a $11.5 million position; 0.8% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Joseph Edelman’s Perceptive Advisors, Mark Broach’s Manatuck Hill Partners and Richard Driehaus’s Driehaus Capital.

As one would reasonably expect, key hedge funds have been driving this bullishness. Scoggin, managed by Curtis Schenker and Craig Effron, initiated the largest call position in Synta Pharmaceuticals Corp. (NASDAQ:SNTA). Scoggin had 3.3 million invested in the company at the end of the quarter. Steven Cohen’s SAC Capital Advisors also initiated a $2.2 million position during the quarter. The following funds were also among the new SNTA investors: Curtis Schenker and Craig Effron’s Scoggin, Jim Simons’s Renaissance Technologies, and Louis Bacon’s Moore Global Investments.

Insider trading activity in Synta Pharmaceuticals Corp. (NASDAQ:SNTA)

Bullish insider trading is best served when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Synta Pharmaceuticals Corp. (NASDAQ:SNTA) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Synta Pharmaceuticals Corp. (NASDAQ:SNTA). These stocks are Trinity Biotech plc (ADR) (NASDAQ:TRIB), Meridian Bioscience, Inc. (NASDAQ:VIVO), SurModics, Inc. (NASDAQ:SRDX), Quidel Corporation (NASDAQ:QDEL), and AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG). All of these stocks are in the diagnostic substances industry and their market caps are closest to SNTA’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!