Many investors, including Carl Icahn or Stan Druckenmiller, have been saying for a while now that the current market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the third quarter, many investors lost money due to unpredictable events such as the concerns over Valeant’s drug pricing policy that led to an overall drop among pharma stocks. Nevertheless, many of the stocks that tanked in the second half of last year and extended the losses so far in 2016, still sport strong fundamentals and their decline was more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Celgene Corporation (NASDAQ:CELG) changed recently.
Celgene Corporation (NASDAQ:CELG) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. At the end of this article we will also compare CELG to other stocks, including Eli Lilly & Co. (NYSE:LLY), 3M Co (NYSE:MMM), and Walgreens Boots Alliance Inc (NASDAQ:WBA) to get a better sense of its popularity.
In today’s marketplace there are many methods that stock market investors put to use to evaluate stocks. A couple of the most innovative methods are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the market by a healthy amount (see the details here).