Is Insys Therapeutics Inc (NASDAQ:INSY) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes, but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Insys Therapeutics Inc (NASDAQ:INSY) has experienced a decrease in hedge fund sentiment of late. 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 First Financial Bankshares Inc (NASDAQ:FFIN), Louisiana-Pacific Corporation (NYSE:LPX), and Monolithic Power Systems, Inc. (NASDAQ:MPWR) to gather more data points.
In today’s marketplace there are tons of indicators stock traders have at their disposal to assess stocks. Two of the most innovative indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the top investment managers can outclass their index-focused peers by a very impressive margin (see the details here).
Keeping this in mind, let’s review the recent action regarding Insys Therapeutics Inc (NASDAQ:INSY).
How are hedge funds trading Insys Therapeutics Inc (NASDAQ:INSY)?
At the end of the third quarter, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -25% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Samuel Isaly’s OrbiMed Advisors has the most valuable position in Insys Therapeutics Inc (NASDAQ:INSY), worth close to $116.2 million, comprising 1.2% of its total 13F portfolio. The second most bullish fund manager is Consonance Capital Management, led by Mitchell Blutt, holding a $92.7 million position; the fund has 13% of its 13F portfolio invested in the stock. Some other peers with similar optimism contain Matt Sirovich and Jeremy Mindich’s Scopia Capital, Ken Griffin’s Citadel Investment Group and Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management.