Lexicon Pharmaceuticals, Inc. (LXRX) Flies On Cancer Drug Study Results; Hedge Funds Saw This Coming

How hedge funds have been trading Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)

Masters Capital Management, led by Mike Masters, held the largest position in Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) at the end of the first quarter, with 7.96 million shares worth about $7.5 million. The second largest stake was held by Hal Minz’s Sabby Capital, which disclosed ownership of 5.37 million shares, valued at $5.1 million. Other members of the smart money that were bullish, encompass Chuck Royce’s Royce & Associates, Jim Simons’ Renaissance Technologies and Paul Marshall and Ian Wace‘s Marshall Wace LLP.

As one would reasonably expect, specific money managers were leading the bulls’ herd. The aforementioned Marshall Wace LLP, created the biggest position in Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), buying 536,686 shares worth about $507,000. Paul Orlin and Alex Porter’s Amici Capital also bought 87,605 shares worth about $83,000. The other funds with new positions in Lexicon Pharmaceuticals are Joel Greenblatt’s Gotham Asset Management and David E. Shaw’s D.E. Shaw & Co., L.P.

The positive results for the cancer drug telotristat etiprate, coupled with the positive sentiment hedge funds had on Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) at the end of the first quarter, makes us recommend a long position in the stock.

Disclosure: None