While we’re still waiting for the FDA to make a decision regarding Hemisperx Biopharma’s (HEB – $2.00) NDA for Ampligen to treat Chronic Fatigue Syndrome (CFS), mutual funds have been big buyers of HEB’s shares.
In the second quarter, ending June 30, 2009, mutual funds have added 8.36 million shares of Hemispherx, or 6.6% of total shares outstanding, to their holdings.
Each quarter institutional investment managers that have more than $100 million under management have to file a form 13F with the Securities and Exchange Commission in which they list all securities held. Luckily there’s a website called “Mutual Fund Facts About Individual Stocks” (mffais.com) that tracks all these investments.
If you visit www.mffais.com and do a search query on HEB, you’ll find that big names like Goldman Sachs Group Inc, Bank Of New York Mellon Corp, Barclays Global Investors Uk Holdings Ltd, Axa and Blackrock Investment Management Llc have bought substantial blocks of stock during the second quarter. At the same time you’ll see that their hasn’t been a lot of institutional selling.
Now we’re not saying that institutions “know more” and that this fact increases the chance to get an approval from the FDA. To us, it’s just an indication that Hemispherx’ name is known on Wall Street and that institutions are now willing to buy some shares of HEB, something that hasn’t been the case for many years.
All in all we believe it’s a positive fact, especially because there has been so little selling at the same time. We’re curious to find out as 13F’s continue to be filed.