If you were to ask many market players, hedge funds are assumed to be overrated, old investment vehicles of a forgotten age. Although there are more than 8,000 hedge funds trading in present day, this site aim at the crème de la crème of this club, about 525 funds. It is widely held that this group has its hands on the majority of the hedge fund industry’s total assets, and by watching their highest quality stock picks, we’ve spotted a few investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year 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 trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Equally as crucial, positive insider trading activity is another way to look at the marketplace. As the old adage goes: there are a number of incentives for an executive to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if shareholders know what to do (learn more here).
What’s more, we’re going to analyze the recent info surrounding Celldex Therapeutics, Inc. (NASDAQ:CLDX).
What does the smart money think about Celldex Therapeutics, Inc. (NASDAQ:CLDX)?
Heading into Q3, a total of 17 of the hedge funds we track were bullish in this stock, a change of 6% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.
As aggregate interest spiked, specific money managers were leading the bulls’ herd. SAC Capital Advisors, managed by Steven Cohen, initiated the biggest position in Celldex Therapeutics, Inc. (NASDAQ:CLDX). SAC Capital Advisors had 62.4 million invested in the company at the end of the quarter. Donald Chiboucis’s Columbus Circle Investors also made a $38.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Arthur B Cohen and Joseph Healey’s Healthcor Management LP, Matt McLennan’s First Eagle Investment Management, and Philip Hempleman’s Ardsley Partners.
What do corporate executives and insiders think about Celldex Therapeutics, Inc. (NASDAQ:CLDX)?
Insider buying made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Celldex Therapeutics, Inc. (NASDAQ:CLDX) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Celldex Therapeutics, Inc. (NASDAQ:CLDX). These stocks are Exelixis, Inc. (NASDAQ:EXEL), PDL BioPharma Inc. (NASDAQ:PDLI), NPS Pharmaceuticals, Inc. (NASDAQ:NPSP), MannKind Corporation (NASDAQ:MNKD), and Puma Biotechnology Inc (NYSE:PBYI). This group of stocks are in the biotechnology industry and their market caps resemble CLDX’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Exelixis, Inc. (NASDAQ:EXEL)||6||0||0|
|PDL BioPharma Inc. (NASDAQ:PDLI)||13||0||0|
|NPS Pharmaceuticals, Inc. (NASDAQ:NPSP)||19||0||0|
|MannKind Corporation (NASDAQ:MNKD)||10||0||0|
|Puma Biotechnology Inc (NYSE:PBYI)||14||0||0|
Using the results explained by Insider Monkey’s strategies, regular investors must always watch hedge fund and insider trading activity, and Celldex Therapeutics, Inc. (NASDAQ:CLDX) applies perfectly to this mantra.