Here is What Hedge Funds Think About Puma Biotechnology Inc (PBYI)

Is Puma Biotechnology Inc (NYSE:PBYI) a buy here? Hedge funds are betting on the stock. The number of bullish hedge fund bets improved by 2 lately.

In the eyes of most traders, hedge funds are seen as worthless, old financial tools of the past. While there are more than 8000 funds trading today, we look at the upper echelon of this club, around 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total capital, and by tracking their top investments, we have figured out a few investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as integral, positive insider trading activity is a second way to break down the investments you’re interested in. As the old adage goes: there are plenty of stimuli for an insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Many academic studies have demonstrated the useful potential of this method if shareholders understand where to look (learn more here).

Consequently, we’re going to take a peek at the latest action surrounding Puma Biotechnology Inc (NYSE:PBYI).

Hedge fund activity in Puma Biotechnology Inc (NYSE:PBYI)

Heading into Q2, a total of 14 of the hedge funds we track were bullish in this stock, a change of 17% from the first quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings considerably.

According to our comprehensive database, Phill Gross and Robert Atchinson’s Adage Capital Management had the largest position in Puma Biotechnology Inc (NYSE:PBYI), worth close to $175 million, comprising 0.6% of its total 13F portfolio. Sitting at the No. 2 spot is Bain Capital of Brookside Capital, with a $33.7 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Samuel Isaly’s OrbiMed Advisors, Jeremy Green’s Redmile Group and Steven Cohen’s SAC Capital Advisors.

As one would reasonably expect, some big names have jumped into Puma Biotechnology Inc (NYSE:PBYI) headfirst. Partner Fund Management, managed by Christopher Medlock James, established the biggest position in Puma Biotechnology Inc (NYSE:PBYI). Partner Fund Management had 7 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital also made a $5.4 million investment in the stock during the quarter. The other funds with brand new PBYI positions are Israel Englander’s Millennium Management, Charles Davidson’s Wexford Capital, and Donald Chiboucis’s Columbus Circle Investors.

How are insiders trading Puma Biotechnology Inc (NYSE:PBYI)?

Insider buying is best served when the company in question has seen transactions within the past 180 days. Over the last 180-day time frame, Puma Biotechnology Inc (NYSE:PBYI) has seen 1 unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Puma Biotechnology Inc (NYSE:PBYI). These stocks are Exelixis, Inc. (NASDAQ:EXEL), NPS Pharmaceuticals, Inc. (NASDAQ:NPSP), PDL BioPharma Inc. (NASDAQ:PDLI), Celldex Therapeutics, Inc. (NASDAQ:CLDX), and MannKind Corporation (NASDAQ:MNKD). This group of stocks belong to the biotechnology industry and their market caps are closest to PBYI’s market cap.