Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Dumping Sunesis Pharmaceuticals, Inc. (SNSS): Curis, Inc. (CRIS), Repros Therapeutics Inc (RPRX)

Is Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) ready to raly soon? Prominent investors are getting less bullish. The number of bullish hedge fund bets stayed the same which is a slightly negative development in our experience

Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)

If you’d ask most traders, hedge funds are viewed as worthless, old investment tools of yesteryear. While there are greater than 8000 funds with their doors open today, we hone in on the aristocrats of this group, close to 450 funds. It is estimated that this group oversees most of all hedge funds’ total capital, and by monitoring their top investments, we have unsheathed a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year 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 trumped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Just as integral, optimistic insider trading activity is another way to break down the financial markets. Obviously, there are plenty of incentives for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this tactic if investors know where to look (learn more here).

Now, we’re going to take a look at the key action regarding Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS).

How have hedgies been trading Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)?

Heading into 2013, a total of 10 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully.

Of the funds we track, Peter Kolchinsky’s RA Capital Management had the biggest position in Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS), worth close to $20 million, accounting for 7.2% of its total 13F portfolio. The second largest stake is held by Visium Asset Management, managed by Jacob Gottlieb, which held a $17 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Jean-Marie Eveillard’s First Eagle Investment Management, Richard Driehaus’s Driehaus Capital and D. E. Shaw’s D E Shaw.

Because Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) has witnessed falling interest from hedge fund managers, we can see that there lies a certain “tier” of money managers that slashed their full holdings in Q4. At the top of the heap, Wayne Holman’s Ridgeback Capital Management dropped the largest position of the “upper crust” of funds we key on, valued at about $9 million in stock.. Jay Venkatesen’s fund, Ayer Capital Management, also dumped its stock, about $6 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How have insiders been trading Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS)?

Insider trading activity, especially when it’s bullish, is most useful when the company in question has experienced transactions within the past half-year. Over the last half-year time period, Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS). These stocks are Curis, Inc. (NASDAQ:CRIS), Repros Therapeutics Inc (NASDAQ:RPRX), Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX), XOMA Corp (NASDAQ:XOMA), and Cerus Corporation (NASDAQ:CERS). This group of stocks are in the biotechnology industry and their market caps are similar to SNSS’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Curis, Inc. (NASDAQ:CRIS) 6 0 0
Repros Therapeutics Inc (NASDAQ:RPRX) 12 1 0
Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) 9 1 0
Cerus Corporation (NASDAQ:CERS) 6 2 0

With the results shown by our research, retail investors must always keep an eye on hedge fund and insider trading sentiment, and Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!