If you were to ask many of your fellow readers, hedge funds are seen as useless, old investment tools of a forgotten age. Although there are over 8,000 hedge funds in operation in present day, Insider Monkey aim at the upper echelon of this group, around 525 funds. Analysts calculate that this group has its hands on the majority of the smart money’s total capital, and by monitoring their best equity investments, we’ve unsheathed a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 33 percentage points in 11 months (find a sample of our picks).
Equally as useful, positive insider trading activity is another way to look at the marketplace. There are many stimuli for an upper level exec to downsize shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the valuable potential of this method if piggybackers understand where to look (learn more here).
Keeping this in mind, we’re going to study the latest info about Sagent Pharmaceuticals Inc (NASDAQ:SGNT).
How have hedgies been trading Sagent Pharmaceuticals Inc (NASDAQ:SGNT)?
At the end of the second quarter, a total of 12 of the hedge funds we track were long in this stock, a change of 20% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes substantially.
According to our 13F database, James E. Flynn’s Deerfield Management had the most valuable position in Sagent Pharmaceuticals Inc (NASDAQ:SGNT), worth close to $43.7 million, accounting for 2.1% of its total 13F portfolio. On Deerfield Management’s heels is Jerome Pfund and Michael Sjostrom of Sectoral Asset Management, with a $12.8 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include Jacob Gottlieb’s Visium Asset Management, Dmitry Balyasny’s Balyasny Asset Management and Israel Englander’s Millennium Management.
Consequently, specific money managers were breaking ground themselves. Deerfield Management, managed by James E. Flynn, assembled the biggest position in Sagent Pharmaceuticals Inc (NASDAQ:SGNT). Deerfield Management had 43.7 million invested in the company at the end of the quarter. Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management also initiated a $12.8 million position during the quarter. The following funds were also among the new SGNT investors: Jacob Gottlieb’s Visium Asset Management, Dmitry Balyasny’s Balyasny Asset Management, and Israel Englander’s Millennium Management.
What have insiders been doing with Sagent Pharmaceuticals Inc (NASDAQ:SGNT)?
Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the latest half-year time period, Sagent Pharmaceuticals Inc (NASDAQ:SGNT) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Sagent Pharmaceuticals Inc (NASDAQ:SGNT). These stocks are Akorn, Inc. (NASDAQ:AKRX), Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), Avanir Pharmaceuticals, Inc. (NASDAQ:AVNR), Hi-Tech Pharmacal Co. (NASDAQ:HITK), and Ligand Pharmaceuticals Inc. (NASDAQ:LGND). This group of stocks are the members of the drugs – generic industry and their market caps are similar to SGNT’s market cap.