Armistice Capital Is Jumping On Pernix Therapeutics Holdings Inc (PTX)’s Bandwagon, Should You Jump Too?

What does the smart money think about Pernix Therapeutics Holdings Inc (NASDAQ:PTX)?

At first quarter’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long in this stock, a change of 46% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully.

According to hedge fund intelligence website Insider Monkey, Mitchell Blutt‘s Consonance Capital Management holds the most valuable position in Pernix Therapeutics Holdings Inc (NASDAQ:PTX). Consonance Capital Management has a $34.9 million position in the stock, comprising 3.2% of its 13F portfolio. Sitting at the number two spot is Broadfin Capital, managed by Kevin Kotler, which held a $23.2 million position; the fund has 1.8% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions consist of Dennis Purcell’s Aisling Capital,venBio Select Advisor managed by Dr. Behzad Aghazadeh, and Samuel Isaly’s OrbiMed Advisors.

As industrywide interest jumped, specific money managers have jumped into Pernix Therapeutics Holdings Inc (NASDAQ:PTX) headfirst. Ghost Tree Capital, managed by Ken Greenberg and David Kim, established the biggest position in Pernix Therapeutics Holdings Inc (NASDAQ:PTX). Ghost Tree Capital had $2.7 million invested in the company at the end of the first trimester. Peter Muller’s PDT Partners also initiated a $1.1 million position during the same quarter. The other funds with new positions in the stock were Neil Chriss’ Hutchin Hill Capital, Craig A. Drill’s Craig Drill Capital, and Bernard Horn’s Polaris Capital Management.

Taking into account the relatively cheap price of Pernix Therapeutics Holdings Inc (NASDAQ:PTX), along with the growing overall hedge fund sentiment and strong insider trading action as the stock has declined, we believe that the stock has a significant upside potential and recommend jumping on the bandwagon.

Disclosure: None