Puma Biotechnology Inc (PBYI), Achillion Pharmaceuticals, Inc. (ACHN): Here is What Hedge Funds Think About NPS Pharmaceuticals, Inc. (NPSP)

NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) has seen a decrease in enthusiasm from smart money in recent months.

NPS Pharmaceuticals, Inc. (NASDAQ:NPSP)According to most investors, hedge funds are perceived as worthless, old financial tools of years past. While there are over 8000 funds with their doors open at present, we at Insider Monkey look at the upper echelon of this club, about 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total capital, and by tracking their top stock picks, we have formulated a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).

Just as beneficial, positive insider trading activity is another way to break down the marketplace. Obviously, there are lots of motivations for an insider to get rid of shares of his or her company, but just one, very simple reason why they would buy. Various empirical studies have demonstrated the useful potential of this tactic if shareholders understand where to look (learn more here).

Now, we’re going to take a glance at the key action encompassing NPS Pharmaceuticals, Inc. (NASDAQ:NPSP).

How are hedge funds trading NPS Pharmaceuticals, Inc. (NASDAQ:NPSP)?

At the end of the fourth quarter, a total of 18 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly.

When looking at the hedgies we track, Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, holds the most valuable position in NPS Pharmaceuticals, Inc. (NASDAQ:NPSP). Sectoral Asset Management has a $16.2 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is OrbiMed Advisors, managed by Samuel Isaly, which held a $11.7 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Cliff Asness’s AQR Capital Management, Drew Cupps’s Cupps Capital Management and SAC Subsidiary’s CR Intrinsic Investors.

Judging by the fact that NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there is a sect of money managers that decided to sell off their entire stakes heading into 2013. It’s worth mentioning that Jay Venkatesen’s Ayer Capital Management dumped the largest investment of the 450+ funds we track, valued at close to $13.4 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund said goodbye to about $6.7 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What do corporate executives and insiders think about NPS Pharmaceuticals, Inc. (NASDAQ:NPSP)?

Bullish insider trading is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) has experienced 1 unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to NPS Pharmaceuticals, Inc. (NASDAQ:NPSP). These stocks are MannKind Corporation (NASDAQ:MNKD), Puma Biotechnology Inc (NYSE:PBYI), Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), Celldex Therapeutics, Inc. (NASDAQ:CLDX), and Exelixis, Inc. (NASDAQ:EXEL). All of these stocks are in the biotechnology industry and their market caps are closest to NPSP’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
MannKind Corporation (NASDAQ:MNKD) 8 2 0
Puma Biotechnology Inc (NYSE:PBYI) 11 2 0
Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) 16 0 1
Celldex Therapeutics, Inc. (NASDAQ:CLDX) 12 0 0
Exelixis, Inc. (NASDAQ:EXEL) 10 1 0

With the results demonstrated by our strategies, everyday investors must always monitor hedge fund and insider trading activity, and NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) is no exception.

Click here to learn why you should track hedge funds

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!