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Do you like to follow smart money buying and selling trends? We ran a screen with this idea in mind. We began by screening the biotech industry for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Arena Pharmaceuticals, Inc. (ARNA): Focuses on discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. Market cap at $1.94B, most recent closing price at $8.93. 5-year projected EPS growth at 25%. Net institutional purchases in the current quarter at 35.6M shares, which represents about 16.47% of the company's float of 216.13M shares.

2. VIVUS Inc. (VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap at $1.04B, most recent closing price at $10.35. 5-year projected EPS growth at 51%. Net institutional purchases in the current quarter at 9.6M shares, which represents about 11.72% of the company's float of 81.93M shares.

3. Affymax, Inc. (AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. Market cap at $864.57M, most recent closing price at $23.26. 5-year projected EPS growth at 25%. Net institutional purchases in the current quarter at 3.1M shares, which represents about 9.7% of the company's float of 31.97M shares.

4. Illumina Inc. (ILMN): Develops, manufactures, and markets integrated systems for the analysis of genetic variation and biological function. Market cap at $6.23B, most recent closing price at $50.52. 5-year projected EPS growth at 17.36%. Net institutional purchases in the current quarter at 10.2M shares, which represents about 8.38% of the company's float of 121.71M shares.

5. BioMarin Pharmaceutical Inc. (BMRN): Develops and commercializes biopharmaceuticals for serious diseases and medical conditions. Market cap at $6.1B, most recent closing price at $49.27. 5-year projected EPS growth at 36%. Net institutional purchases in the current quarter at 9.2M shares, which represents about 7.46% of the company's float of 123.29M shares.

6. Exact Sciences Corporation (EXAS): Focuses on developing a molecular diagnostic screening technology for the early detection and prevention of colorectal pre-cancer and cancer. Market cap at $584.77M, most recent closing price at $9.17. 5-year projected EPS growth at 17.5%. Net institutional purchases in the current quarter at 3.1M shares, which represents about 5.32% of the company's float of 58.27M shares.

Source: Hedge Funds Are Buying These 6 High-Growth Biotech Stocks