They had 203K shares. Liquidating and you KNOW it's being frontrun.
Diamondback Is Shutting Down .
Hedge fund Diamondback Capital Management LLC told investors Thursday that it plans to close and wind down its funds after receiving redemptions requests totaling more than a quarter of its assets.
In a letter to investors Thursday, the Stamford, Conn., hedge fund's founders Richard Schimel and Larry Sapanski said they received redemption requests for Dec. 31 of about $520 million, or 26% of its assets under management. As a result, the fund would be left with about $1.45 billion in assets under management.
"Rather than continue to manage investor capital while undertaking to restructure the firm to manage this reduced level of assets, we have decided that the most prudent course is to wind down and terminate the funds and return investor capital," Messrs. Schimel and Sapanski said in the letter.
The announcement of the wind down comes as former Diamondback portfolio manager Todd Newman is on trial for alleged insider trading in technology stocks. Mr. Newman has denied wrongdoing.
In the near term I think the answer is ... well... everyone. Folks with long term cap gains selling before the tax man cometh. Those with loses selling to further reduce tax bill. And little visibility on near term catalysts.
Novel anti-infectives like TZD always have a slow start. Many ID docs praise the drug and the company...then lock it away in a cabinet for multidrug failure cases in fear that if over used it will develop resistance. Just the way that market works. Was the same at the start for eventual block buster drugs like Zithromax. So long term, we like the drug and the company, but have no position.
Still, the technicals on $TSRX are fugly with nary a technical sign hinting at bottom yet. Expecting a test and perhaps a bounce off $4.23 fib level, but no way to tell if that will be the bottom or just a relief rally pause in the selling.
Who has long-term capital gains in Trius? I wouldn't think any at this price. Tax selling combined with a fund dumping IMO.
There is plenty of visibility on near-term catalysts. ESTABSLISH-2 data by March/April. CEO stated in active partnership discussions which should be announced after ESTABLISH-2. NDA filing by mid 2013, start of more phase 3 trials for bacteremia and pneumonia. Tedizolid stands to gain a nice share due to it's unique characteristics and faster course of treatment. The drug is also bactericidal which leads to little resistance chances.
Some think there might be financing, but Trius has over 70 million cash and a 25 million ATM financing deal. I see partnership announcements after ESTABLISH-2 and money from these deals to finance more development.
I think 4.3s is/may be a bottom. It will be just fine next year before the data. Also - some hedge funds selling is not a reason for the drop. Management knew whos selling and should do some alternative rather than damaging the company's profile in every day's bleeding.