ImmunoGen, Inc. (NASDAQ:IMGN) investors should pay attention to a decrease in hedge fund interest recently.
At the moment, there are dozens of methods market participants can use to monitor publicly traded companies. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can beat the S&P 500 by a healthy amount (see just how much).
Just as key, positive insider trading sentiment is a second way to break down the marketplace. Obviously, there are a number of motivations for an upper level exec to drop shares of his or her company, but just one, very clear reason why they would buy. Many empirical studies have demonstrated the market-beating potential of this method if shareholders know what to do (learn more here).
Consequently, it's important to take a glance at the latest action encompassing ImmunoGen, Inc. (NASDAQ:IMGN).
At the end of the fourth quarter, a total of 5 of the hedge funds we track were bullish in this stock, a change of -17% from the third quarter. With hedgies' capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes considerably.
Of the funds we track, Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, holds the most valuable position in ImmunoGen, Inc. (NASDAQ:IMGN). Sectoral Asset Management has a $37 million position in the stock, comprising 1.3% of its 13F portfolio. Coming in second is Platinum Asset Management, managed by Kerr Neilson, which held a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedgies that are bullish include Cliff Asness's AQR Capital Management, Ken Griffin's Citadel Investment Group and Glenn Russell Dubin's Highbridge Capital Management.
Seeing as ImmunoGen, Inc. (NASDAQ:IMGN) has faced a declination in interest from the aggregate hedge fund industry, we can see that there were a few money managers that elected to cut their full holdings last quarter. At the top of the heap, Samuel Isaly's OrbiMed Advisors sold off the biggest position of the 450+ funds we watch, valued at about $28.1 million in stock., and Louis Bacon of Moore Global Investments was right behind this move, as the fund dumped about $1.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 1 funds last quarter.
Insider trading activity, especially when it's bullish, is particularly usable when the company in focus has seen transactions within the past six months. Over the latest 180-day time period, ImmunoGen, Inc. (NASDAQ:IMGN) has experienced 1 unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let's also review hedge fund and insider activity in other stocks similar to ImmunoGen, Inc. (NASDAQ:IMGN). These stocks are Sarepta Therapeutics Inc (NASDAQ:SRPT), Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), Synageva BioPharma Corp (NASDAQ:GEVA), Nektar Therapeutics (NASDAQ:NKTR), and Acorda Therapeutics Inc (NASDAQ:ACOR). This group of stocks are in the biotechnology industry and their market caps are similar to IMGN's market cap.