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Here is What Hedge Funds Think About Cubist Pharmaceuticals Inc (CBST)

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Cubist Pharmaceuticals Inc (NASDAQ:CBST) was in 22 hedge funds’ portfolio at the end of March. CBST investors should pay attention to an increase in hedge fund interest of late. There were 19 hedge funds in our database with CBST positions at the end of the previous quarter.

In today’s marketplace, there are a multitude of indicators shareholders can use to analyze publicly traded companies. A couple of the best 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 the market by a significant margin (see just how much).

Cubist Pharmaceuticals Inc (NASDAQ:CBST)Just as integral, optimistic insider trading sentiment is a second way to break down the marketplace. Obviously, there are many reasons for a bullish insider to drop shares of his or her company, but just one, very simple reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if “monkeys” know where to look (learn more here).

Keeping this in mind, let’s take a peek at the recent action surrounding Cubist Pharmaceuticals Inc (NASDAQ:CBST).

What have hedge funds been doing with Cubist Pharmaceuticals Inc (NASDAQ:CBST)?

At Q1’s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 16% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Sean Cullinan’s Point State Capital had the biggest position in Cubist Pharmaceuticals Inc (NASDAQ:CBST), worth close to $57.4 million, accounting for 0.8% of its total 13F portfolio. The second largest stake is held by Ken Griffin of Citadel Investment Group, with a $44.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Steven Cohen’s SAC Capital Advisors, Israel Englander’s Millennium Management and William Leland Edwards’s Palo Alto Investors.

With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. SAC Capital Advisors, managed by Steven Cohen, assembled the most valuable position in Cubist Pharmaceuticals Inc (NASDAQ:CBST). SAC Capital Advisors had 44.5 million invested in the company at the end of the quarter. Arthur B Cohen and Joseph Healey’s Healthcor Management LP also initiated a $28.1 million position during the quarter. The following funds were also among the new CBST investors: Israel Englander’s Millennium Management, Jacob Gottlieb’s Visium Asset Management, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

What have insiders been doing with Cubist Pharmaceuticals Inc (NASDAQ:CBST)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past half-year. Over the latest 180-day time period, Cubist Pharmaceuticals Inc (NASDAQ:CBST) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Cubist Pharmaceuticals Inc (NASDAQ:CBST). These stocks are The Medicines Company (NASDAQ:MDCO), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Endo Health Solutions Inc (NASDAQ:ENDP), Warner Chilcott Plc (NASDAQ:WCRX), and United Therapeutics Corporation (NASDAQ:UTHR). All of these stocks are in the drug manufacturers – other industry and their market caps match CBST’s market cap.

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