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Is Sucampo Pharmaceuticals, Inc. (SCMP) Going to Burn These Hedge Funds?

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Is Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) the right investment to pursue these days? Hedge funds are turning bullish. The number of long hedge fund bets rose by 3 recently.

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With these “truths” under our belt, it’s important to take a gander at the latest action regarding Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP).

How have hedgies been trading Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP)?

In preparation for this quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of 75% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings considerably.

Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP)Of the funds we track, Nantahala Capital Management, managed by Wilmot B. Harkey and Daniel Mack, holds the most valuable position in Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP). Nantahala Capital Management has a $4.7 million position in the stock, comprising 0.8% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $1.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Israel Englander’s Millennium Management, D. E. Shaw’s D E Shaw and John Overdeck and David Siegel’s Two Sigma Advisors.

As industrywide interest jumped, some big names have jumped into Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) headfirst. Millennium Management, managed by Israel Englander, assembled the biggest position in Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP). Millennium Management had 0.8 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Steven Cohen’s SAC Capital Advisors and Neil Chriss’s Hutchin Hill Capital.

What have insiders been doing with Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP)?

Insider buying is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last half-year time frame, Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) has experienced zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP). These stocks are Pernix Therapeutics Holdings Inc (NASDAQ:PTX), DUSA Pharmaceuticals Inc (NASDAQ:DUSA), Depomed Inc (NASDAQ:DEPO), SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN), and Lannett Company, Inc. (NYSEAMEX:LCI). All of these stocks are in the drug manufacturers – other industry and their market caps match SCMP’s market cap.

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