Is Anacor Pharmaceuticals Inc (NASDAQ:ANAC) a sound investment now? Prominent investors are taking a bullish view. The number of bullish hedge fund positions advanced by 3 lately.
In the 21st century investor’s toolkit, there are plenty of indicators market participants can use to track their holdings. Two of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outperform the S&P 500 by a solid margin (see just how much).
Just as key, positive insider trading sentiment is another way to break down the marketplace. There are a variety of reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the impressive potential of this method if piggybackers know what to do (learn more here).
With these “truths” under our belt, it’s important to take a peek at the latest action regarding Anacor Pharmaceuticals Inc (NASDAQ:ANAC).
How have hedgies been trading Anacor Pharmaceuticals Inc (NASDAQ:ANAC)?
In preparation for this year, a total of 11 of the hedge funds we track were bullish in this stock, a change of 38% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their stakes substantially.
Of the funds we track, Broadfin Capital, managed by Kevin Kotler, holds the biggest position in Anacor Pharmaceuticals Inc (NASDAQ:ANAC). Broadfin Capital has a $7 million position in the stock, comprising 1.8% of its 13F portfolio. Coming in second is QVT Financial, managed by Daniel Gold, which held a $7 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedge funds that hold long positions include Mark Kingdon’s Kingdon Capital, Julian Baker and Felix Baker’s Baker Bros. Advisors and Brian Ashford-Russell and Tim Woolley’s Polar Capital.
As aggregate interest increased, specific money managers were leading the bulls’ herd. Kingdon Capital, managed by Mark Kingdon, created the most outsized position in Anacor Pharmaceuticals Inc (NASDAQ:ANAC). Kingdon Capital had 5 million invested in the company at the end of the quarter. Brian Ashford-Russell and Tim Woolley’s Polar Capital also initiated a $3 million position during the quarter. The other funds with brand new ANAC positions are James E. Flynn’s Deerfield Management, Jean-Marie Eveillard’s First Eagle Investment Management, and Gregory Fraser, Rudolph Kluiber, and Timothy Kroch’s GRT Capital Partners.
What do corporate executives and insiders think about Anacor Pharmaceuticals Inc (NASDAQ:ANAC)?
Insider buying is best served when the primary stock in question has seen transactions within the past 180 days. Over the latest 180-day time frame, Anacor Pharmaceuticals Inc (NASDAQ:ANAC) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Anacor Pharmaceuticals Inc (NASDAQ:ANAC). These stocks are BioTime, Inc. (NYSEAMEX:BTX), Coronado Biosciences Inc (NASDAQ:CNDO), Repligen Corporation (NASDAQ:RGEN), Amyris Inc (NASDAQ:AMRS), and Insmed Incorporated (NASDAQ:INSM). This group of stocks belong to the biotechnology industry and their market caps resemble ANAC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|BioTime, Inc. (NYSEAMEX:BTX)||1||1||1|
|Coronado Biosciences Inc (NASDAQ:CNDO)||4||3||0|
|Repligen Corporation (NASDAQ:RGEN)||4||0||1|
|Amyris Inc (NASDAQ:AMRS)||3||3||0|
|Insmed Incorporated (NASDAQ:INSM)||8||1||0|
With the returns shown by Insider Monkey’s strategies, everyday investors must always keep an eye on hedge fund and insider trading activity, and Anacor Pharmaceuticals Inc (NASDAQ:ANAC) is an important part of this process.