BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) was in 24 hedge funds’ portfolio at the end of December. BMRN investors should be aware of a decrease in support from the world’s most elite money managers in recent months. There were 33 hedge funds in our database with BMRN positions at the end of the previous quarter.
If you’d ask most investors, hedge funds are assumed to be unimportant, old financial vehicles of the past. While there are greater than 8000 funds in operation today, we at Insider Monkey hone in on the bigwigs of this group, around 450 funds. It is estimated that this group controls the majority of the hedge fund industry’s total asset base, and by paying attention to their top stock picks, we have identified a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points annually 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 25 percentage points in 6.5 month (see all of our picks from August).
Just as beneficial, optimistic insider trading activity is another way to parse down the world of equities. Obviously, there are plenty of reasons for an insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).
Consequently, we’re going to take a look at the recent action surrounding BioMarin Pharmaceutical Inc. (NASDAQ:BMRN).
What have hedge funds been doing with BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)?
In preparation for this year, a total of 24 of the hedge funds we track were bullish in this stock, a change of -27% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes considerably.
When looking at the hedgies we track, Steven Cohen’s SAC Capital Advisors had the largest position in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), worth close to $119 million, accounting for 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Jérôme Pfund and Michael Sjöström of Sectoral Asset Management, with a $104 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include John Griffin’s Blue Ridge Capital, Samuel Isaly’s OrbiMed Advisors and William Leland Edwards’s Palo Alto Investors.
Due to the fact that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has faced a declination in interest from hedge fund managers, we can see that there is a sect of hedgies that elected to cut their full holdings in Q4. Interestingly, Jacob Gottlieb’s Visium Asset Management cut the largest position of the 450+ funds we key on, valued at an estimated $42 million in stock., and Dan Loeb of Third Point was right behind this move, as the fund cut about $40 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 9 funds in Q4.
What do corporate executives and insiders think about BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)?
Insider purchases made by high-level executives is best served when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time period, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has experienced 3 unique insiders purchasing, and 13 insider sales (see the details of insider trades here).
With the results exhibited by the aforementioned tactics, everyday investors must always watch hedge fund and insider trading activity, and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is no exception.
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