If you’re a Synta Pharmaceuticals Corp. (NASDAQ:SNTA) investor, this data will make you want to rethink your position. Just sayin’.
If you were to ask many of your peers, hedge funds are assumed to be overrated, outdated financial vehicles of a forgotten age. Although there are over 8,000 hedge funds trading today, this site focuses on the crème de la crème of this club, close to 525 funds. Analysts calculate that this group has its hands on the lion’s share of all hedge funds’ total capital, and by watching their highest performing equity investments, we’ve brought to light a number of investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year 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 topped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as key, bullish insider trading sentiment is another way to analyze the marketplace. There are a number of motivations for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if you know what to do (learn more here).
Thus, it’s important to study the newest info surrounding Synta Pharmaceuticals Corp. (NASDAQ:SNTA).
How have hedgies been trading Synta Pharmaceuticals Corp. (NASDAQ:SNTA)?
In preparation for the third quarter, a total of 10 of the hedge funds we track were bullish in this stock, a change of -29% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of notable hedge fund managers who were increasing their stakes considerably.
According to our 13F database, Perceptive Advisors, managed by Joseph Edelman, holds the largest position in Synta Pharmaceuticals Corp. (NASDAQ:SNTA). Perceptive Advisors has a $13.4 million position in the stock, comprising 1.4% of its 13F portfolio. The second largest stake is held by QVT Financial, managed by Daniel Gold, which held a $12.1 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Steven Cohen’s SAC Capital Advisors, Julian Baker and Felix Baker’s Baker Bros. Advisors and Cliff Asness’s AQR Capital Management.
Because Synta Pharmaceuticals Corp. (NASDAQ:SNTA) has faced bearish sentiment from upper-tier hedge fund managers, it’s safe to say that there exists a select few fund managers that elected to cut their full holdings at the end of the second quarter. Intriguingly, Mark Broach’s Manatuck Hill Partners cut the biggest investment of the 450+ funds we watch, comprising close to $6.7 million in stock, and Richard Driehaus of Driehaus Capital was right behind this move, as the fund said goodbye to about $6.1 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds at the end of the second quarter.
What do corporate executives and insiders think about Synta Pharmaceuticals Corp. (NASDAQ:SNTA)?
Bullish insider trading is best served when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time period, Synta Pharmaceuticals Corp. (NASDAQ:SNTA) has experienced 4 unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Synta Pharmaceuticals Corp. (NASDAQ:SNTA). These stocks are Trinity Biotech plc (ADR) (NASDAQ:TRIB), Meridian Bioscience, Inc. (NASDAQ:VIVO), SurModics, Inc. (NASDAQ:SRDX), Quidel Corporation (NASDAQ:QDEL), and AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG). This group of stocks belong to the diagnostic substances industry and their market caps are similar to SNTA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Trinity Biotech plc (ADR) (NASDAQ:TRIB) | 10 | 0 | 0 |
| Meridian Bioscience, Inc. (NASDAQ:VIVO) | 11 | 1 | 3 |
| SurModics, Inc. (NASDAQ:SRDX) | 12 | 0 | 2 |
| Quidel Corporation (NASDAQ:QDEL) | 12 | 0 | 2 |
| AMAG Pharmaceuticals, Inc. (NASDAQ:AMAG) | 11 | 0 | 1 |
Using the results demonstrated by our tactics, average investors must always pay attention to hedge fund and insider trading sentiment, and Synta Pharmaceuticals Corp. (NASDAQ:SNTA) is an important part of this process.
