Amarin Corporation plc (ADR) (NASDAQ:AMRN) was in 19 hedge funds’ portfolio at the end of March. AMRN shareholders have witnessed a decrease in support from the world’s most elite money managers recently. There were 20 hedge funds in our database with AMRN holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of gauges shareholders can use to track stocks. A duo of the most useful 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 hedge fund managers can beat the broader indices by a superb margin (see just how much).
Equally as beneficial, positive insider trading sentiment is another way to break down the investments you’re interested in. There are a variety of incentives for an insider to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Plenty of academic studies have demonstrated the market-beating potential of this strategy if “monkeys” understand what to do (learn more here).
Keeping this in mind, it’s important to take a glance at the key action surrounding Amarin Corporation plc (ADR) (NASDAQ:AMRN).
Hedge fund activity in Amarin Corporation plc (ADR) (NASDAQ:AMRN)
In preparation for this quarter, a total of 19 of the hedge funds we track were long in this stock, a change of -5% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.
When looking at the hedgies we track, Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management had the largest position in Amarin Corporation plc (ADR) (NASDAQ:AMRN), worth close to $13.4 million, accounting for 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Deerfield Management, managed by James E. Flynn, which held a $11.6 million position; 0.7% of its 13F portfolio is allocated to the stock. Other hedge funds that hold long positions include Ryan Schaper’s Point Lobos Capital, Mark Kingdon’s Kingdon Capital and Wojciech Uzdelewicz’s Espalier Global Management.
Since Amarin Corporation plc (ADR) (NASDAQ:AMRN) has witnessed bearish sentiment from the smart money, it’s safe to say that there lies a certain “tier” of hedge funds who sold off their full holdings last quarter. It’s worth mentioning that Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management dumped the largest investment of all the hedgies we track, comprising an estimated $20.2 million in stock.. James E. Flynn’s fund, Deerfield Management, also dumped its call options., about $19.4 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 1 funds last quarter.
How have insiders been trading Amarin Corporation plc (ADR) (NASDAQ:AMRN)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last half-year time frame, Amarin Corporation plc (ADR) (NASDAQ:AMRN) has experienced zero unique insiders purchasing, 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 Amarin Corporation plc (ADR) (NASDAQ:AMRN). These stocks are Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Orexigen Therapeutics, Inc. (NASDAQ:OREX), The Medicines Company (NASDAQ:MDCO), and ISIS Pharmaceuticals, Inc. (NASDAQ:ISIS). This group of stocks belong to the drug manufacturers – other industry and their market caps are similar to AMRN’s market cap.