Is Dyax Corp. (NASDAQ:DYAX) the right investment to pursue these days? The best stock pickers are taking a bullish view. The number of long hedge fund positions inched up by 3 in recent months.
In today’s marketplace, there are tons of gauges investors can use to analyze publicly traded companies. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can outperform the broader indices by a significant amount (see just how much).
Equally as key, positive insider trading sentiment is another way to parse down the world of equities. Obviously, there are many reasons for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this tactic if investors know where to look (learn more here).
Consequently, it’s important to take a peek at the latest action encompassing Dyax Corp. (NASDAQ:DYAX).
What does the smart money think about Dyax Corp. (NASDAQ:DYAX)?
In preparation for this year, a total of 11 of the hedge funds we track were long in this stock, a change of 38% from the third quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
According to our comprehensive database, Peter Kolchinsky’s RA Capital Management had the biggest position in Dyax Corp. (NASDAQ:DYAX), worth close to $30 million, accounting for 10.5% of its total 13F portfolio. The second largest stake is held by Chuck Royce of Royce & Associates, with a $7 million position; 0.1% of its 13F portfolio is allocated to the stock. Other peers that hold long positions include Joseph Edelman’s Perceptive Advisors, SAC Subsidiary’s Sigma Capital Management and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Sigma Capital Management, managed by SAC Subsidiary, created the biggest position in Dyax Corp. (NASDAQ:DYAX). Sigma Capital Management had 3 million invested in the company at the end of the quarter. SAC Subsidiary’s CR Intrinsic Investors also initiated a $1 million position during the quarter. The other funds with brand new DYAX positions are Nathan Fischel’s DAFNA Capital Management and Jim Simons’s Renaissance Technologies.
Insider trading activity in Dyax Corp. (NASDAQ:DYAX)
Insider purchases made by high-level executives is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Dyax Corp. (NASDAQ:DYAX) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Dyax Corp. (NASDAQ:DYAX). These stocks are QLT Inc. (USA) (NASDAQ:QLTI), Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI), Idenix Pharmaceuticals Inc (NASDAQ:IDIX), Sequenom, Inc. (NASDAQ:SQNM), and Cambrex Corporation (NYSE:CBM). All of these stocks are in the biotechnology industry and their market caps are closest to DYAX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|QLT Inc. (USA) (NASDAQ:QLTI)||16||0||1|
|Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI)||13||1||3|
|Idenix Pharmaceuticals Inc (NASDAQ:IDIX)||17||0||0|
|Sequenom, Inc. (NASDAQ:SQNM)||15||2||0|
|Cambrex Corporation (NYSE:CBM)||14||0||2|
With the returns exhibited by Insider Monkey’s studies, retail investors should always keep an eye on hedge fund and insider trading sentiment, and Dyax Corp. (NASDAQ:DYAX) applies perfectly to this mantra.
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.