Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) has seen an increase in activity from the world’s largest hedge funds recently.
To most traders, hedge funds are assumed to be unimportant, old investment vehicles of years past. While there are greater than 8000 funds trading at present, we look at the moguls of this club, about 450 funds. Most estimates calculate that this group oversees the majority of the smart money’s total asset base, and by tracking their highest performing investments, we have come up with a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed 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 outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).
Equally as key, positive insider trading activity is another way to parse down the stock market universe. There are many reasons for an executive to sell shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers understand where to look (learn more here).
Consequently, let’s take a glance at the key action encompassing Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY).
What does the smart money think about Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)?
Heading into Q2, a total of 17 of the hedge funds we track were bullish in this stock, a change of 55% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings meaningfully.
When looking at the hedgies we track, Arthur B Cohen and Joseph Healey’s Healthcor Management LP had the largest position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), worth close to $35.3 million, accounting for 1.5% of its total 13F portfolio. Coming in second is Roberto Mignone of Bridger Management, with a $33.3 million position; 2.3% of its 13F portfolio is allocated to the company. Other hedge funds that hold long positions include James E. Flynn’s Deerfield Management, Stephen DuBois’s Camber Capital Management and Steven Cohen’s SAC Capital Advisors.
As aggregate interest increased, key hedge funds have jumped into Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) headfirst. Deerfield Management, managed by James E. Flynn, created the largest position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). Deerfield Management had 29.8 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $14.3 million investment in the stock during the quarter. The other funds with brand new ALNY positions are Brian Ashford-Russell and Tim Woolley’s Polar Capital, Joseph Edelman’s Perceptive Advisors, and David Costen Haley’s HBK Investments.
What have insiders been doing with Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past half-year. Over the latest half-year time frame, Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) has seen 1 unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY). These stocks are Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Acorda Therapeutics Inc (NASDAQ:ACOR), ImmunoGen, Inc. (NASDAQ:IMGN), Viropharma Inc (NASDAQ:VPHM), and Synageva BioPharma Corp (NASDAQ:GEVA). This group of stocks belong to the biotechnology industry and their market caps are similar to ALNY’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)||13||0||2|
|Acorda Therapeutics Inc (NASDAQ:ACOR)||10||0||7|
|ImmunoGen, Inc. (NASDAQ:IMGN)||5||0||2|
|Viropharma Inc (NASDAQ:VPHM)||16||1||4|
|Synageva BioPharma Corp (NASDAQ:GEVA)||7||3||5|
With the results exhibited by our tactics, retail investors must always watch hedge fund and insider trading activity, and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) shareholders fit into this picture quite nicely.