BioDelivery Sciences International, Inc. (NASDAQ:BDSI) investors should pay attention to a decrease in support from the world's most elite money managers in recent months.
In today’s marketplace, there are tons of metrics shareholders can use to watch the equity markets. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the market by a solid amount (see just how much).
Just as key, optimistic insider trading sentiment is another way to break down the stock market universe. Obviously, there are a variety of motivations for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would buy. Several empirical studies have demonstrated the valuable potential of this tactic if "monkeys" understand where to look (learn more here).
Consequently, it's important to take a peek at the recent action surrounding BioDelivery Sciences International, Inc. (NASDAQ:BDSI).
Heading into 2013, a total of 9 of the hedge funds we track were long in this stock, a change of -10% from one quarter earlier. With the smart money's capital changing hands, there exists an "upper tier" of notable hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in BioDelivery Sciences International, Inc. (NASDAQ:BDSI). Adage Capital Management has a $10 million position in the stock, comprising 0% of its 13F portfolio. Sitting at the No. 2 spot is Julian Baker and Felix Baker of Baker Bros. Advisors, with a $9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedge funds that are bullish include Kevin Kotler's Broadfin Capital, James E. Flynn's Deerfield Management and Gregory Fraser, Rudolph Kluiber, and Timothy Kroch's GRT Capital Partners.
Since BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has witnessed falling interest from hedge fund managers, it's safe to say that there exists a select few money managers that slashed their positions entirely last quarter. Interestingly, Peter Algert and Kevin Coldiron's Algert Coldiron Investors sold off the biggest stake of the "upper crust" of funds we watch, totaling close to $0 million in stock.. Mike Vranos's fund, Ellington, also cut its stock, about $0 million worth. These transactions are interesting, as total hedge fund interest was cut by 1 funds last quarter.
Insider buying is particularly usable when the company in question has experienced transactions within the past half-year. Over the latest six-month time frame, BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has experienced 2 unique insiders buying, and 2 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 BioDelivery Sciences International, Inc. (NASDAQ:BDSI). These stocks are Cytokinetics, Inc. (NASDAQ:CYTK), ArQule, Inc. (NASDAQ:ARQL), ZIOPHARM Oncology Inc. (NASDAQ:ZIOP), Pain Therapeutics, Inc. (NASDAQ:PTIE), and Amicus Therapeutics, Inc. (NASDAQ:FOLD). This group of stocks are in the biotechnology industry and their market caps are similar to BDSI's market cap.