We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Orexigen Therapeutics, Inc. (NASDAQ:OREX) based on that data.
Orexigen Therapeutics, Inc. (NASDAQ:OREX) has seen a decrease in support from the world’s most elite money managers recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Tandem Diabetes Care Inc (NASDAQ:TNDM), CTI BioPharma Corp (NASDAQ:CTIC), and Corenergy Infrastructure Trust Inc (NYSE:CORR) to gather more data points.
To the average investor there are plenty of metrics stock market investors employ to evaluate publicly traded companies. A couple of the most innovative metrics are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the elite hedge fund managers can outclass the S&P 500 by a solid amount (see the details here).
With all of this in mind, let’s go over the fresh action surrounding Orexigen Therapeutics, Inc. (NASDAQ:OREX).
What does the smart money think about Orexigen Therapeutics, Inc. (NASDAQ:OREX)?
At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -32% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Robert Pohly’s Samlyn Capital has the largest position in Orexigen Therapeutics, Inc. (NASDAQ:OREX), worth close to $13 million, comprising 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which holds a $8.3 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other professional money managers that are bullish comprise Jim Simons’ Renaissance Technologies, William Leland Edwards’s Palo Alto Investors and Kris Jenner, Gordon Bussard, Graham McPhail’s Rock Springs Capital Management.
Seeing as Orexigen Therapeutics, Inc. (NASDAQ:OREX) has witnessed a declination in interest from hedge fund managers, it’s easy to see that there exists a select few fund managers that decided to sell off their full holdings heading into Q4. Interestingly, Christopher James’s Partner Fund Management said goodbye to the largest position of all the hedgies watched by Insider Monkey, valued at an estimated $26.1 million in stock, and Thomas Steyer’s Farallon Capital was right behind this move, as the fund sold off about $11.7 million worth. These moves are interesting, as total hedge fund interest was cut by 9 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Orexigen Therapeutics, Inc. (NASDAQ:OREX) but similarly valued. We will take a look at Tandem Diabetes Care Inc (NASDAQ:TNDM), CTI BioPharma Corp (NASDAQ:CTIC), Corenergy Infrastructure Trust Inc (NYSE:CORR), and Nova Measuring Instruments Ltd. (NASDAQ:NVMI). This group of stocks’ market values are closest to OREX’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $49 million in OREX’s case. Corenergy Infrastructure Trust Inc (NYSE:CORR) is the most popular stock in this table. On the other hand Nova Measuring Instruments Ltd. (NASDAQ:NVMI) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Orexigen Therapeutics, Inc. (NASDAQ:OREX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.