The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Anacor Pharmaceuticals Inc (NASDAQ:ANAC).
Anacor Pharmaceuticals Inc (NASDAQ:ANAC) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Teleflex Incorporated (NYSE:TFX), Avery Dennison Corp (NYSE:AVY), and EnLink Midstream Partners LP (NYSE:ENLK) to gather more data points.
Follow Anacor Pharmaceuticals Inc. (NASDAQ:ANAC)
Follow Anacor Pharmaceuticals Inc. (NASDAQ:ANAC)
In today’s marketplace there are dozens of gauges investors use to assess their holdings. A couple of the most under-the-radar gauges are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the S&P 500 by a superb amount (see the details here).
Now, let’s take a look at the fresh action encompassing Anacor Pharmaceuticals Inc (NASDAQ:ANAC).
How have hedgies been trading Anacor Pharmaceuticals Inc (NASDAQ:ANAC)?
Heading into Q4, a total of 36 of the hedge funds tracked by Insider Monkey held long positions in this stock, up by 6% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Julian Baker and Felix Baker’s Baker Bros. Advisors has the number one position in Anacor Pharmaceuticals Inc (NASDAQ:ANAC), worth close to $486.8 million, comprising 4.5% of its total 13F portfolio. Coming in second is Palo Alto Investors, managed by William Leland Edwards, which holds a $303.6 million position; the fund has 14.6% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism comprise Israel Englander’s Millennium Management, Anders Hove and Bong Koh’s VHCP Management and Ken Griffin’s Citadel Investment Group.
As industrywide interest jumped, some big names were leading the bulls’ herd. Renaissance Technologies, managed by Jim Simons, assembled the most outsized position in Anacor Pharmaceuticals Inc (NASDAQ:ANAC). The fund reportedly had $36.5 million invested in the company at the end of the quarter. Arthur B Cohen and Joseph Healey’s Healthcor Management LP also made a $14.7 million investment in the stock during the quarter. The other funds with new positions in the stock are James Dondero’s Highland Capital Management, Simon Sadler’s Segantii Capital, and Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Anacor Pharmaceuticals Inc (NASDAQ:ANAC) but similarly valued. These stocks are Teleflex Incorporated (NYSE:TFX), Avery Dennison Corp (NYSE:AVY), EnLink Midstream Partners LP (NYSE:ENLK), and athenahealth, Inc (NASDAQ:ATHN). All of these stocks’ market caps resemble ANAC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TFX | 21 | 547458 | 4 |
| AVY | 19 | 206152 | 2 |
| ENLK | 6 | 132215 | -2 |
| ATHN | 18 | 423614 | 0 |
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $327 million. Teleflex Incorporated (NYSE:TFX) is the most popular stock in this table. On the other hand EnLink Midstream Partners LP (NYSE:ENLK) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Anacor Pharmaceuticals Inc (NASDAQ:ANAC) is clearly more popular among hedge funds, having also attracted $1.5 billion in investments, significantly north of the average. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
