In the financial world, there are many methods shareholders can use to track stocks. A couple of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can beat the S&P 500 by a healthy margin (see just how much).
Just as key, optimistic insider trading sentiment is a second way to analyze the world of equities. As the old adage goes: there are many motivations for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this tactic if “monkeys” know where to look (learn more here).
Keeping this in mind, it’s important to examine the latest info surrounding Infinity Pharmaceuticals Inc. (NASDAQ:INFI).
How are hedge funds trading Infinity Pharmaceuticals Inc. (NASDAQ:INFI)?
Heading into Q3, a total of 20 of the hedge funds we track were bullish in this stock, a change of -9% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially.
When using filings from the hedgies we track, OrbiMed Advisors, managed by Samuel Isaly, holds the most valuable position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). OrbiMed Advisors has a $73.2 million position in the stock, comprising 1.6% of its 13F portfolio. The second largest stake is held by James E. Flynn of Deerfield Management, with a $38.1 million position; 1.8% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Steven Cohen’s SAC Capital Advisors, Daniel Gold’s QVT Financial and Julian Baker and Felix Baker’s Baker Bros. Advisors.
As Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has experienced bearish sentiment from the top-tier hedge fund industry, we can see that there exists a select few money managers that decided to sell off their entire stakes last quarter. It’s worth mentioning that Julian Baker and Felix Baker’s Baker Bros. Advisors dropped the biggest investment of the “upper crust” of funds we track, worth an estimated $57.1 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also cut its stock, about $20.2 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds last quarter.
Insider trading activity in Infinity Pharmaceuticals Inc. (NASDAQ:INFI)
Insider buying made by high-level executives is best served when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also review the relationship between both of these indicators in other stocks similar to Infinity Pharmaceuticals Inc. (NASDAQ:INFI). These stocks are Incyte Corporation (NASDAQ:INCY), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Questcor Pharmaceuticals Inc (NASDAQ:QCOR), Charles River Laboratories (NYSE:CRL), and Theravance Inc (NASDAQ:THRX). This group of stocks belong to the biotechnology industry and their market caps match INFI’s market cap.