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 Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!