Is Supernus Pharmaceuticals Inc (SUPN) Going to Burn These Hedge Funds?

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Supernus Pharmaceuticals Inc (NASDAQ:SUPN) investors should be aware of a decrease in enthusiasm from smart money in recent months.

To most shareholders, hedge funds are perceived as slow, outdated investment vehicles of yesteryear. While there are over 8000 funds trading today, we at Insider Monkey hone in on the aristocrats of this group, close to 450 funds. It is estimated that this group oversees most of the hedge fund industry’s total capital, and by paying attention to their top stock picks, we have brought to light a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum 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 topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).


Just as beneficial, bullish insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are plenty of motivations for a bullish insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if you know what to do (learn more here).

Now, let’s take a look at the key action surrounding Supernus Pharmaceuticals Inc (NASDAQ:SUPN).

What have hedge funds been doing with Supernus Pharmaceuticals Inc (NASDAQ:SUPN)?

Heading into Q2, a total of 5 of the hedge funds we track were bullish in this stock, a change of -17% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes considerably.

According to our comprehensive database, OrbiMed Advisors, managed by Samuel Isaly, holds the most valuable position in Supernus Pharmaceuticals Inc (NASDAQ:SUPN). OrbiMed Advisors has a $15.8 million position in the stock, comprising 0.4% of its 13F portfolio. On OrbiMed Advisors’s heels is Joseph Edelman of Perceptive Advisors, with a $3.3 million position; 0.4% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Stephen DuBois’s Camber Capital Management, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.

Because Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has witnessed falling interest from the aggregate hedge fund industry, we can see that there were a few hedge funds that decided to sell off their positions entirely heading into Q2. Interestingly, Anand Parekh’s Alyeska Investment Group cut the largest position of the 450+ funds we watch, valued at an estimated $3.6 million in stock.. Mike Vranos’s fund, Ellington, also cut its stock, about $0.6 million worth. These transactions are important to note, as total hedge fund interest fell by 1 funds heading into Q2.

Insider trading activity in Supernus Pharmaceuticals Inc (NASDAQ:SUPN)

Bullish insider trading is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the last half-year time frame, Supernus Pharmaceuticals Inc (NASDAQ:SUPN) has seen 4 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Supernus Pharmaceuticals Inc (NASDAQ:SUPN). These stocks are Ligand Pharmaceuticals Inc. (NASDAQ:LGND), Galectin Therapeutics Inc. (NASDAQ:GALT), Sagent Pharmaceuticals Inc (NASDAQ:SGNT), Hi-Tech Pharmacal Co. (NASDAQ:HITK), and Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR). All of these stocks are in the drugs – generic industry and their market caps are closest to SUPN’s market cap.

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