Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Synthetic Biologics Inc (SYN) Going to Burn These Hedge Funds?

Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Synthetic Biologics Inc (NYSEAMEX:SYN).

Synthetic Biologics Inc (NYSEAMEX:SYN) has experienced an increase in activity from the world’s largest hedge funds of late. SYN was in 6 hedge funds’ portfolios at the end of September. There were 4 hedge funds in our database with SYN positions at the end of the previous quarter. At the end of this article we will also compare SYN to other stocks including NTELOS Holdings Corp. (NASDAQ:NTLS), Nivalis Therapeutics Inc (NASDAQ:NVLS), and Preformed Line Products Company (NASDAQ:PLPC) to get a better sense of its popularity.

Follow Synthetic Biologics Inc. (NYSEMKT:SYN)
Trade (NYSEMKT:SYN) Now!

If you’d ask most investors, hedge funds are viewed as underperforming, old financial vehicles of yesteryear. While there are over 8000 funds trading at the moment, Our researchers look at the elite of this group, approximately 700 funds. Most estimates calculate that this group of people orchestrate most of all hedge funds’ total capital, and by keeping track of their first-class investments, Insider Monkey has uncovered a few investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points a year for a decade in their back tests.

Keeping this in mind, we’re going to review the recent action surrounding Synthetic Biologics Inc (NYSEAMEX:SYN).

What does the smart money think about Synthetic Biologics Inc (NYSEAMEX:SYN)?

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 50% from the second quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management has the number one position in Synthetic Biologics Inc (NYSEAMEX:SYN), worth close to $9.6 million, amounting to 0.3% of its total 13F portfolio. Coming in second is Knoll Capital Management, managed by Fred Knoll, which holds an $8.5 million position; the fund has 3.6% of its 13F portfolio invested in the stock. Some other peers that hold long positions encompass Anand Parekh’s Alyeska Investment Group, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.