Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) was in 24 hedge funds’ portfolio at the end of December. ONXX investors should pay attention to a decrease in support from the world’s most elite money managers in recent months. There were 27 hedge funds in our database with ONXX holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are dozens of gauges shareholders can use to track stocks. A duo of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the broader indices by a very impressive amount (see just how much).
Just as integral, optimistic insider trading activity is a second way to break down the stock market universe. Obviously, there are a number of motivations for an executive to downsize shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if “monkeys” know where to look (learn more here).
With these “truths” under our belt, it’s important to take a glance at the recent action surrounding Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX).
What does the smart money think about Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX)?
Heading into 2013, a total of 24 of the hedge funds we track held long positions in this stock, a change of -11% from the third quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Palo Alto Investors, managed by William Leland Edwards, holds the largest position in Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). Palo Alto Investors has a $146 million billion position in the stock, comprising 17.2% of its 13F portfolio. Coming in second is Jérôme Pfund and Michael Sjöström of Sectoral Asset Management, with a $145 million position; the fund has 5.1% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Samuel Isaly’s OrbiMed Advisors, and Phill Gross and Robert Atchinson’s Adage Capital Management.
Judging by the fact that Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) has experienced falling interest from the aggregate hedge fund industry, we can see that there is a sect of funds that elected to cut their full holdings last quarter. It’s worth mentioning that Jim Simons’s Renaissance Technologies sold off the biggest investment of the 450+ funds we key on, valued at close to $38 million in stock.. Richard Schimel’s fund, Diamondback Capital, also cut its stock, about $37 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 3 funds last quarter.
What do corporate executives and insiders think about Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has seen transactions within the past six months. Over the last 180-day time period, Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) has experienced zero unique insiders purchasing, and 14 insider sales (see the details of insider trades here).
With the returns shown by our studies, retail investors should always pay attention to hedge fund and insider trading activity, and Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) shareholders fit into this picture quite nicely.
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