Is Puma Biotechnology Inc (NYSE:PBYI) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy league graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments (for some reason media paid a ton of attention to Ackman’s gigantic JC Penney and Valeant failures) and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
Puma Biotechnology Inc investors should pay attention to a decrease in enthusiasm from smart money recently. PBYI was in 18 hedge funds’ portfolios at the end of the third quarter of 2015. There were 29 hedge funds in our database with PBYI holdings at the end of the previous quarter. 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 United Natural Foods, Inc. (NASDAQ:UNFI), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), and Tech Data Corp (NASDAQ:TECD) to gather more data points.
Keeping this in mind, we’re going to take a look at the fresh action regarding Puma Biotechnology Inc (NYSE:PBYI).
What does the smart money think about Puma Biotechnology Inc (NYSE:PBYI)?
Heading into Q4, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of -38% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the number one position in Puma Biotechnology Inc (NYSE:PBYI). Adage Capital Management has a $428.5 million position in the stock, comprising 1.2% of its 13F portfolio. The second most bullish fund manager is Samuel Isaly of OrbiMed Advisors, with a $90.1 million position; 0.9% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that hold long positions comprise Columbus Circle Investors, and Steve Cohen’s Point72 Asset Management.