Biogen Idec Inc. (NASDAQ:BIIB) investors: listen up.
To many market players, hedge funds are assumed to be overrated, old investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation in present day, this site focuses on the top tier of this club, about 525 funds. Analysts calculate that this group controls the majority of the hedge fund industry's total assets, and by tracking their highest performing equity investments, we've come up with a number of investment strategies that have historically outstripped the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum 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 topped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as crucial, positive insider trading sentiment is a second way to look at the world of equities. Just as you'd expect, there are a variety of stimuli for a bullish insider to sell shares of his or her company, but just one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the market-beating potential of this tactic if investors know what to do (learn more here).
Thus, let's discuss the latest info about Biogen Idec Inc. (NASDAQ:BIIB).
At Q2's end, a total of 49 of the hedge funds we track held long positions in this stock, a change of 63% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of notable hedge fund managers who were upping their holdings meaningfully.
Out of the hedge funds we follow, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Biogen Idec Inc. (NASDAQ:BIIB). Renaissance Technologies has a $299.9 million position in the stock, comprising 0.8% of its 13F portfolio. Coming in second is Columbus Circle Investors, managed by Donald Chiboucis, which held a $245.5 million position; the fund has 2% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Samuel Isaly's OrbiMed Advisors, Andreas Halvorsen's Viking Global and Phill Gross and Robert Atchinson's Adage Capital Management.
As industrywide interest increased, particular hedge funds have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, established the most outsized position in Biogen Idec Inc. (NASDAQ:BIIB). Renaissance Technologies had 299.9 million invested in the company at the end of the quarter. Donald Chiboucis's Columbus Circle Investors also initiated a $245.5 million position during the quarter. The following funds were also among the new BIIB investors: Samuel Isaly's OrbiMed Advisors, Andreas Halvorsen's Viking Global, and Phill Gross and Robert Atchinson's Adage Capital Management.
Insider buying is particularly usable when the primary stock in question has experienced transactions within the past 180 days. Over the last half-year time period, Biogen Idec Inc. (NASDAQ:BIIB) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to Biogen Idec Inc. (NASDAQ:BIIB). These stocks are Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN), Amgen, Inc. (NASDAQ:AMGN), Gilead Sciences, Inc. (NASDAQ:GILD), and Celgene Corporation (NASDAQ:CELG). This group of stocks are the members of the biotechnology industry and their market caps match BIIB's market cap.