Is Clovis Oncology Inc (NASDAQ:CLVS) the right investment to pursue these days? The best stock pickers are taking a pessimistic view. The number of long hedge fund positions were trimmed by 2 recently.
To the average investor, there are many metrics investors can use to track the equity markets. Some of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can beat the broader indices by a superb margin (see just how much).
Just as integral, positive insider trading activity is another way to break down the investments you’re interested in. There are a variety of reasons for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).
With all of this in mind, let’s take a gander at the recent action regarding Clovis Oncology Inc (NASDAQ:CLVS).
What have hedge funds been doing with Clovis Oncology Inc (NASDAQ:CLVS)?
At the end of the fourth quarter, a total of 7 of the hedge funds we track were long in this stock, a change of -22% from the previous quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the largest position in Clovis Oncology Inc (NASDAQ:CLVS). Baker Bros. Advisors has a $17.8 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Daniel Gold of QVT Financial, with a $10.1 million position; 0.7% of its 13F portfolio is allocated to the company. Remaining hedge funds that hold long positions include Christopher Medlock James’s Partner Fund Management, Israel Englander’s Millennium Management and Richard Driehaus’s Driehaus Capital.
Judging by the fact that Clovis Oncology Inc (NASDAQ:CLVS) has witnessed a declination in interest from the entirety of the hedge funds we track, logic holds that there were a few hedgies who sold off their positions entirely heading into 2013. Interestingly, Wayne Holman’s Ridgeback Capital Management cut the largest stake of the “upper crust” of funds we monitor, totaling close to $7.1 million in stock., and John Burbank of Passport Capital was right behind this move, as the fund dumped about $1.2 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 2 funds heading into 2013.
Insider trading activity in Clovis Oncology Inc (NASDAQ:CLVS)
Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time frame, Clovis Oncology Inc (NASDAQ:CLVS) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Clovis Oncology Inc (NASDAQ:CLVS). These stocks are Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), TESARO Inc (NASDAQ:TSRO), InterMune Inc (NASDAQ:ITMN), Dendreon Corporation (NASDAQ:DNDN), and China Biologic Products Inc (NASDAQ:CBPO). This group of stocks belong to the biotechnology industry and their market caps are closest to CLVS’s market cap.