Insmed Incorporated (NASDAQ:INSM) was in 11 hedge funds’ portfolio at the end of March. INSM shareholders have witnessed an increase in enthusiasm from smart money of late. There were 8 hedge funds in our database with INSM holdings at the end of the previous quarter.
At the moment, there are many methods shareholders can use to watch stocks. Two of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can outperform the broader indices by a very impressive amount (see just how much).
Equally as key, optimistic insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are many incentives for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this method if you know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the latest action regarding Insmed Incorporated (NASDAQ:INSM).
How have hedgies been trading Insmed Incorporated (NASDAQ:INSM)?
At Q1’s end, a total of 11 of the hedge funds we track held long positions in this stock, a change of 38% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their stakes significantly.
Of the funds we track, RA Capital Management, managed by Peter Kolchinsky, holds the biggest position in Insmed Incorporated (NASDAQ:INSM). RA Capital Management has a $18.2 million position in the stock, comprising 3.9% of its 13F portfolio. On RA Capital Management’s heels is Baker Bros. Advisors, managed by Julian Baker and Felix Baker, which held a $6 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Samuel Isaly’s OrbiMed Advisors, Kevin Kotler’s Broadfin Capital and Jay Venkatesen’s Ayer Capital Management.
Now, key money managers were leading the bulls’ herd. OrbiMed Advisors, managed by Samuel Isaly, established the most outsized position in Insmed Incorporated (NASDAQ:INSM). OrbiMed Advisors had 5.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new INSM investors: Jeffrey Vinik’s Vinik Asset Management and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
How have insiders been trading Insmed Incorporated (NASDAQ:INSM)?
Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Insmed Incorporated (NASDAQ:INSM) has experienced 1 unique insiders buying, and zero insider sales (see the details of insider trades here).
With the returns exhibited by Insider Monkey’s studies, everyday investors must always monitor hedge fund and insider trading activity, and Insmed Incorporated (NASDAQ:INSM) applies perfectly to this mantra.