Valeant Pharmaceuticals Intl Inc (VRX): Hedge Funds and Insiders Are Bullish, What Should You Do?

Page 1 of 2

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) was in 37 hedge funds’ portfolio at the end of March. VRX shareholders have witnessed an increase in enthusiasm from smart money recently. There were 35 hedge funds in our database with VRX holdings at the end of the previous quarter.

If you’d ask most investors, hedge funds are perceived as unimportant, outdated financial vehicles of years past. While there are greater than 8000 funds in operation at the moment, we at Insider Monkey hone in on the aristocrats of this club, about 450 funds. It is widely believed that this group oversees the lion’s share of the smart money’s total capital, and by watching their top stock picks, we have uncovered a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 beaten the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Valeant Pharmaceuticals Intl Inc (NYSE:VRX)

Just as integral, optimistic insider trading sentiment is a second way to parse down the world of equities. Obviously, there are many reasons for an executive to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this method if investors know where to look (learn more here).

Consequently, we’re going to take a peek at the key action encompassing Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

What does the smart money think about Valeant Pharmaceuticals Intl Inc (NYSE:VRX)?

Heading into Q2, a total of 37 of the hedge funds we track were long in this stock, a change of 6% from the previous quarter.

As industrywide interest jumped, key hedge funds have jumped into Valeant Pharmaceuticals Intl Inc (NYSE:VRX) headfirst. Lone Pine Capital, managed by Stephen Mandel, created the most outsized position in Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Lone Pine Capital had 368.5 million invested in the company at the end of the quarter. William B. Gray’s Orbis Investment Management also made a $153.7 million investment in the stock during the quarter. The following funds were also among the new VRX investors: Eric Chen’s Antipodean Advisors and Charles Anderson’s Fox Point Capital Management.

How are insiders trading Valeant Pharmaceuticals Intl Inc (NYSE:VRX)?

Insider purchases made by high-level executives is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time frame, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to Valeant Pharmaceuticals Intl Inc (NYSE:VRX). These stocks are Delcath Systems, Inc. (NASDAQ:DCTH), Petmed Express Inc (NASDAQ:PETS), Alkermes Plc (NASDAQ:ALKS), Hospira, Inc. (NYSE:HSP), and Elan Corporation, plc (ADR) (NYSE:ELN). This group of stocks are in the drug delivery industry and their market caps are closest to VRX’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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!