Elan Corporation, plc (ADR) (NYSE:ELN) has seen an increase in enthusiasm from smart money of late.
In the 21st century investor’s toolkit, there are tons of metrics market participants can use to track Mr. Market. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outpace the market by a significant margin (see just how much).
Just as integral, positive insider trading activity is a second way to break down the marketplace. Just as you’d expect, there are a number of reasons for an insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).
With all of this in mind, we’re going to take a gander at the recent action regarding Elan Corporation, plc (ADR) (NYSE:ELN).
How are hedge funds trading Elan Corporation, plc (ADR) (NYSE:ELN)?
In preparation for this quarter, a total of 33 of the hedge funds we track were long in this stock, a change of 32% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, Viking Global, managed by Andreas Halvorsen, holds the largest position in Elan Corporation, plc (ADR) (NYSE:ELN). Viking Global has a $110.6 million position in the stock, comprising 0.7% of its 13F portfolio. Sitting at the No. 2 spot is Baupost Group, managed by Seth Klarman, which held a $107.7 million position; 3.5% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include David Cohen and Harold Levy’s Iridian Asset Management, Kenneth Mario Garschina’s Mason Capital Management and Matt Sirovich and Jeremy Mindich’s Scopia Capital.
As one would reasonably expect, key money managers were breaking ground themselves. Viking Global, managed by Andreas Halvorsen, established the largest position in Elan Corporation, plc (ADR) (NYSE:ELN). Viking Global had 110.6 million invested in the company at the end of the quarter. Seth Klarman’s Baupost Group also initiated a $107.7 million position during the quarter. The following funds were also among the new ELN investors: David Cohen and Harold Levy’s Iridian Asset Management, Kenneth Mario Garschina’s Mason Capital Management, and Matt Sirovich and Jeremy Mindich’s Scopia Capital.
What do corporate executives and insiders think about Elan Corporation, plc (ADR) (NYSE:ELN)?
Insider trading activity, especially when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the last six-month time frame, Elan Corporation, plc (ADR) (NYSE:ELN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Elan Corporation, plc (ADR) (NYSE:ELN). These stocks are Delcath Systems, Inc. (NASDAQ:DCTH), Petmed Express Inc (NASDAQ:PETS), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Alkermes Plc (NASDAQ:ALKS), and Hospira, Inc. (NYSE:HSP). This group of stocks are in the drug delivery industry and their market caps are closest to ELN’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Delcath Systems, Inc. (NASDAQ:DCTH)||4||0||0|
|Petmed Express Inc (NASDAQ:PETS)||11||0||2|
|Valeant Pharmaceuticals Intl Inc (NYSE:VRX)||37||1||0|
|Alkermes Plc (NASDAQ:ALKS)||15||0||10|
|Hospira, Inc. (NYSE:HSP)||21||0||0|
With the results exhibited by Insider Monkey’s research, everyday investors should always watch hedge fund and insider trading sentiment, and Elan Corporation, plc (ADR) (NYSE:ELN) applies perfectly to this mantra.