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Should You Buy Medivation Inc (NASDAQ:MDVN)?

Medivation Inc (NASDAQ:MDVN) was in 29 hedge funds’ portfolio at the end of the fourth quarter of 2012. MDVN has seen an increase in activity from the world’s largest hedge funds recently. There were 27 hedge funds in our database with MDVN positions at the end of the previous quarter.

Medivation Inc (NASDAQ:MDVN)

If you’d ask most investors, hedge funds are assumed to be slow, outdated investment tools of the past. While there are over 8000 funds with their doors open today, we choose to focus on the aristocrats of this club, around 450 funds. Most estimates calculate that this group has its hands on the majority of the hedge fund industry’s total capital, and by keeping an eye on their highest performing picks, we have revealed a number of investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Just as beneficial, bullish insider trading sentiment is another way to parse down the stock market universe. As the old adage goes: there are lots of reasons for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).

With all of this in mind, we’re going to take a gander at the recent action surrounding Medivation Inc (NASDAQ:MDVN).

What does the smart money think about Medivation Inc (NASDAQ:MDVN)?

At year’s end, a total of 29 of the hedge funds we track held long positions in this stock, a change of 7% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings meaningfully.

Of the funds we track, Andreas Halvorsen’s Viking Global had the most valuable position in Medivation Inc (NASDAQ:MDVN), worth close to $172 million, comprising 1.2% of its total 13F portfolio. On Viking Global’s heels is Donald Chiboucis of Columbus Circle Investors, with a $122 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other hedgies that are bullish include Phill Gross and Robert Atchinson’s Adage Capital Management, Samuel Isaly’s OrbiMed Advisors and Christopher MedlockáJames’s Partner Fund Management.

As aggregate interest increased, some big names were breaking ground themselves. Brookside Capital, managed by Bain Capital, created the most valuable position in Medivation Inc (NASDAQ:MDVN). Brookside Capital had 33 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also initiated a $26 million position during the quarter. The other funds with new positions in the stock are Mark Kingdon’s Kingdon Capital, John Murphy’s Alydar Capital, and Louis Bacon’s Moore Global Investments.

What do corporate executives and insiders think about Medivation Inc (NASDAQ:MDVN)?

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past half-year. Over the latest six-month time period, Medivation Inc (NASDAQ:MDVN) has experienced zero unique insiders purchasing, and 5 insider sales (see the details of insider trades here).

With the returns exhibited by the aforementioned strategies, retail investors should always watch hedge fund and insider trading sentiment, and Medivation Inc (NASDAQ:MDVN) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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