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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 20%.

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.

1. Arena Pharmaceuticals, Inc. (NASDAQ: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 $1.91B, most recent closing price at $9.

Net institutional purchases in the current quarter at 29.4M shares, which represents about 13.6% of the company's float of 216.13M shares. As of September, 29th, 2012, the top 2 holders of the stock are Wellington Management and The Vanguard Group.

2. Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX): Engages in developing therapies targeting the molecular mechanisms causing cancer in the United States and internationally. Market cap at $5.17B, most recent closing price at $75.53.

Net institutional purchases in the current quarter at 3.3M shares, which represents about 5.23% of the company's float of 63.14M shares. As of September 30th, 2012, the top 2 holders of the stock are FMR, LLC, and JP Morgan Chase & Co.

3. VIVUS Inc. (NASDAQ:VVUS): Engages in the development and commercialization of therapeutic products for underserved markets in the United States. Market cap at $1.38B, most recent closing price at $13.42.

Net institutional purchases in the current quarter at 6.1M shares, which represents about 7.38% of the company's float of 82.66M shares. As of September 29th, 2012, the top 2 holders of the stock are QVT Financial and Passport Capital.

*Institutional data sourced from Fidelity.

Source: 3 High-Growth Biotech Stocks Being Bought By Hedge Funds