Anacor Pharmaceuticals Inc (NASDAQ:ANAC) was in 11 hedge funds’ portfolio at the end of the first quarter of 2013. ANAC investors should be aware of a decrease in support from the world’s most elite money managers recently. There were 11 hedge funds in our database with ANAC holdings at the end of the previous quarter.
To the average investor, there are a multitude of gauges shareholders can use to watch the equity markets. Some of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outclass the market by a significant amount (see just how much).
Just as key, bullish insider trading activity is a second way to parse down the financial markets. Obviously, there are lots of reasons for a bullish insider to drop shares of his or her company, but just one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).
With these “truths” under our belt, we’re going to take a gander at the key action surrounding Anacor Pharmaceuticals Inc (NASDAQ:ANAC).
How are hedge funds trading Anacor Pharmaceuticals Inc (NASDAQ:ANAC)?
In preparation for this quarter, a total of 11 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes significantly.
When looking at the hedgies we track, Kingdon Capital, managed by Mark Kingdon, holds the largest position in Anacor Pharmaceuticals Inc (NASDAQ:ANAC). Kingdon Capital has a $12.1 million position in the stock, comprising 0.5% of its 13F portfolio. On Kingdon Capital’s heels is QVT Financial, managed by Daniel Gold, which held a $8.5 million position; 0.6% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Kevin Kotler’s Broadfin Capital, Julian Baker and Felix Baker’s Baker Bros. Advisors and William Leland Edwards’s Palo Alto Investors.
Since Anacor Pharmaceuticals Inc (NASDAQ:ANAC) has faced declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedge funds who sold off their entire stakes in Q1. It’s worth mentioning that Brian Ashford-Russell and Tim Woolley’s Polar Capital dumped the biggest investment of all the hedgies we watch, totaling about $2.6 million in stock., and Peter Kolchinsky of RA Capital Management was right behind this move, as the fund dropped about $2.2 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Anacor Pharmaceuticals Inc (NASDAQ:ANAC)?
Insider buying is best served when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, 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 examine 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 are in the biotechnology industry and their market caps are similar to ANAC’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|BioTime, Inc. (NYSEAMEX:BTX)||1||1|
|Coronado Biosciences Inc (NASDAQ:CNDO)||5||3||0|
|Repligen Corporation (NASDAQ:RGEN)||5||0||3|
|Amyris Inc (NASDAQ:AMRS)||3||0|
|Insmed Incorporated (NASDAQ:INSM)||11||1||0|
With the returns demonstrated by Insider Monkey’s tactics, retail investors should always monitor hedge fund and insider trading activity, and Anacor Pharmaceuticals Inc (NASDAQ:ANAC) is no exception.