Infinity Pharmaceuticals Inc. (NASDAQ:INFI) was in 22 hedge funds' portfolio at the end of December. INFI has experienced an increase in enthusiasm from smart money of late. There were 16 hedge funds in our database with INFI holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are plenty of methods market participants can use to monitor publicly traded companies. Two of the most useful are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a superb margin (see just how much).
Equally as important, positive insider trading sentiment is another way to break down the marketplace. There are lots of stimuli for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this tactic if piggybackers understand what to do (learn more here).
With all of this in mind, let's take a peek at the recent action regarding Infinity Pharmaceuticals Inc. (NASDAQ:INFI).
In preparation for this year, a total of 22 of the hedge funds we track were long in this stock, a change of 38% from the third quarter. With hedgies' sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably.
Of the funds we track, Samuel Isaly's OrbiMed Advisors had the most valuable position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI), worth close to $111.3 million, comprising 3.4% of its total 13F portfolio. On OrbiMed Advisors's heels is Perceptive Advisors, managed by Joseph Edelman, which held a $89.1 million position; 15.7% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Daniel Gold's QVT Financial, Julian Baker and Felix Baker's Baker Bros. Advisors and Sean Cullinan's Point State Capital.
Now, specific money managers were breaking ground themselves. Deerfield Management, managed by James E. Flynn, created the largest position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). Deerfield Management had 20.1 million invested in the company at the end of the quarter. Donald Chiboucis's Columbus Circle Investors also initiated a $8.7 million position during the quarter. The other funds with brand new INFI positions are SAC Subsidiary's Sigma Capital Management, Samuel Isaly's OrbiMed Advisors, and Mark Broach's Manatuck Hill Partners.
Insider buying is at its handiest when the company in question has seen transactions within the past six months. Over the last six-month time frame, Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has seen zero unique insiders purchasing, 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 Infinity Pharmaceuticals Inc. (NASDAQ:INFI). These stocks are Incyte Corporation (NASDAQ:INCY), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Questcor Pharmaceuticals Inc (NASDAQ:QCOR), Charles River Laboratories (NYSE:CRL), and Theravance Inc (NASDAQ:THRX). All of these stocks are in the biotechnology industry and their market caps are similar to INFI's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Incyte Corporation (NASDAQ:INCY)||15||1||6|
|Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)||11||0||1|
|Questcor Pharmaceuticals Inc (NASDAQ:QCOR)||21||2||2|
|Charles River Laboratories (NYSE:CRL)||20||0||7|
|Theravance Inc (NASDAQ:THRX)||10||1||1|
With the results exhibited by Insider Monkey's studies, retail investors must always monitor hedge fund and insider trading sentiment, and Infinity Pharmaceuticals Inc. (NASDAQ:INFI) shareholders fit into this picture quite nicely.
See the 7 most bullish money managers: