Seattle Genetics, Inc. (NASDAQ:SGEN) was in 8 hedge funds’ portfolio at the end of the first quarter of 2013. SGEN has experienced a decrease in hedge fund interest lately. There were 8 hedge funds in our database with SGEN positions at the end of the previous quarter.
In the eyes of most stock holders, hedge funds are perceived as worthless, old investment vehicles of yesteryear. While there are over 8000 funds in operation at the moment, we at Insider Monkey hone in on the leaders of this club, about 450 funds. It is widely believed that this group oversees the lion’s share of the hedge fund industry’s total capital, and by paying attention to their top picks, we have uncovered a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year 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 outclassed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
With these “truths” under our belt, we’re going to take a look at the recent action surrounding Seattle Genetics, Inc. (NASDAQ:SGEN).
How have hedgies been trading Seattle Genetics, Inc. (NASDAQ:SGEN)?
At Q1’s end, a total of 8 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes considerably.
According to our comprehensive database, Baker Bros. Advisors, managed by Julian Baker and Felix Baker, holds the most valuable position in Seattle Genetics, Inc. (NASDAQ:SGEN). Baker Bros. Advisors has a $686.1 million position in the stock, comprising 13.7% of its 13F portfolio. Sitting at the No. 2 spot is Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $15.5 million position; 0.5% of its 13F portfolio is allocated to the company. Some other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and John Overdeck and David Siegel’s Two Sigma Advisors.
Judging by the fact that Seattle Genetics, Inc. (NASDAQ:SGEN) has witnessed a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few hedge funds that slashed their entire stakes in Q1. It’s worth mentioning that Steven Cohen’s SAC Capital Advisors cut the biggest investment of all the hedgies we monitor, comprising an estimated $0.6 million in stock., and Cliff Asness of AQR Capital Management was right behind this move, as the fund dropped about $0.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Seattle Genetics, Inc. (NASDAQ:SGEN)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past six months. Over the last 180-day time frame, Seattle Genetics, Inc. (NASDAQ:SGEN) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Seattle Genetics, Inc. (NASDAQ:SGEN). These stocks are Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), Incyte Corporation (NASDAQ:INCY), Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ), Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA), and Medivation Inc (NASDAQ:MDVN). This group of stocks belong to the biotechnology industry and their market caps resemble SGEN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) | 29 | 0 | 13 |
| Incyte Corporation (NASDAQ:INCY) | 16 | 1 | 6 |
| Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) | 26 | 0 | 6 |
| Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) | 30 | 0 | 11 |
| Medivation Inc (NASDAQ:MDVN) | 34 | 0 | 3 |
With the returns shown by Insider Monkey’s time-tested strategies, everyday investors must always pay attention to hedge fund and insider trading activity, and Seattle Genetics, Inc. (NASDAQ:SGEN) shareholders fit into this picture quite nicely.
