Infinity Pharmaceuticals Inc. (NASDAQ:INFI) was in 22 hedge funds’ portfolio at the end of March. INFI investors should be aware of a decrease in activity from the world’s largest hedge funds in recent months. There were 22 hedge funds in our database with INFI positions at the end of the previous quarter.
In the financial world, there are plenty of methods market participants can use to watch publicly traded companies. A pair of the most useful 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 elite fund managers can beat their index-focused peers by a significant margin (see just how much).
Just as integral, optimistic insider trading activity is another way to parse down the financial markets. Obviously, there are many motivations for an executive to drop shares of his or her company, but just one, very obvious reason why they would buy. Plenty of academic studies have demonstrated the market-beating potential of this strategy if shareholders understand what to do (learn more here).
With all of this in mind, let’s take a look at the latest action encompassing Infinity Pharmaceuticals Inc. (NASDAQ:INFI).
How are hedge funds trading Infinity Pharmaceuticals Inc. (NASDAQ:INFI)?
In preparation for this quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly.
Of the funds we track, OrbiMed Advisors, managed by Samuel Isaly, holds the largest position in Infinity Pharmaceuticals Inc. (NASDAQ:INFI). OrbiMed Advisors has a $161.4 million position in the stock, comprising 3.8% of its 13F portfolio. The second largest stake is held by Joseph Edelman of Perceptive Advisors, with a $133.3 million position; the fund has 16% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Daniel Gold’s QVT Financial, Julian Baker and Felix Baker’s Baker Bros. Advisors and Steven Cohen’s SAC Capital Advisors.
Because Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has faced declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of funds who sold off their positions entirely last quarter. It’s worth mentioning that Sean Cullinan’s Point State Capital said goodbye to the largest position of all the hedgies we monitor, totaling close to $21.2 million in stock.. James E. Flynn’s fund, Deerfield Management, also dropped its stock, about $20.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Infinity Pharmaceuticals Inc. (NASDAQ:INFI)?
Insider purchases made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time frame, Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Infinity Pharmaceuticals Inc. (NASDAQ:INFI). These stocks are Incyte Corporation (NASDAQ:INCY), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Questcor Pharmaceuticals Inc (NASDAQ:QCOR), Charles River Laboratories (NYSE:CRL), and Theravance Inc (NASDAQ:THRX). This group of stocks are the members of the biotechnology industry and their market caps are closest to INFI’s market cap.