Is Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) Going to Burn These Hedge Funds?

Is Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) the right investment to pursue these days? Prominent investors are taking a bearish view. The number of long hedge fund bets were cut by 1 lately.

At the moment, there are many indicators investors can use to watch the equity markets. Two of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the market by a healthy amount (see just how much).

Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL)Just as beneficial, positive insider trading activity is another way to break down the stock market universe. There are plenty of incentives for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the impressive potential of this tactic if shareholders understand what to do (learn more here).

Now, it’s important to take a peek at the key action encompassing Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL).

How have hedgies been trading Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL)?

Heading into 2013, a total of 19 of the hedge funds we track held long positions in this stock, a change of -5% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their holdings considerably.

According to our comprehensive database, Julian Baker and Felix Baker’s Baker Bros. Advisors had the biggest position in Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL), worth close to $81 million, comprising 2.1% of its total 13F portfolio. Coming in second is William Leland Edwards of Palo Alto Investors, with a $44 million position; 1.1% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, James E. Flynn’s Deerfield Management and Israel Englander’s Millennium Management.

Seeing as Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) has witnessed declining sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of money managers who were dropping their full holdings heading into 2013. Intriguingly, Daniel Arbess’s Xerion said goodbye to the largest stake of the “upper crust” of funds we track, comprising close to $18 million in call options. Jérôme Pfund and Michael Sjöström’s fund, Sectoral Asset Management, also dumped its stock, about $11 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds heading into 2013.

What have insiders been doing with Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL)?

Insider buying is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time frame, Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) has experienced 1 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

With the results shown by the aforementioned time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading activity, and Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!