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Many leading funds, including Fidelity Investments, Wellington Management and QVT Financial, filed forms 13-D and 13-G (and form 4) with the SEC this week (March 12th to March 15th, 2011), indicating that they had amended their ownership in U.S. traded public companies operating in the healthcare and tech sectors. The following are the most notable institutional trades based on our analysis of those filings (for more info on Forms 13-D and 13-G, and how to interpret that, please refer to the end of this article):

Adtran Inc. (NASDAQ:ADTN): ADTN is a leading global provider of networking and communications equipment, with a portfolio of more than 1,400 solutions for use in the last mile of today's telecommunications networks. Its solutions enable voice, data, video and Internet communications across fiber-optic, copper-based and wireless network infrastructures. On Monday, Boston-based mega fund Wellington Management, with $254 billion in 13-F assets in its Q4 filing, filed SEC Form 13G/A indicating that it holds 6.64 million or 10.4% of outstanding shares, an increase from the 4.04 million shares it held at the end of Q4.

ADTN released disappointing Q1 guidance earlier today, projecting 22-25c in earnings v/s analyst estimates of 45c, and revenues at $130-$135 million v/s estimates of $175 million. The stock, however, had already corrected significantly, down 20% so far in March, on the back of a couple of analyst downgrades earlier this month. Also, going forward, the company was optimistic due to an improvement in March order rates, projected that the slowdown was behind them. As a result, shares were up slightly today, trading at 13 forward P/E compared to the average of 22.1 for its peers in the telecommunications equipment group.

Besides ADTN, Wellington also filed SEC Forms 13G/A on Monday for Coventry Health Care Inc. (CVH) and Exelixis Inc. (NASDAQ:EXEL). CVH is a provider of managed healthcare services through HMO, PPO and POS plans, and Medicare and Medicaid products, and Wellington indicated in its filing that it holds 14.21 million shares or 10.1% of outstanding shares, an increase from the 13.71 million shares it held at the end of Q4. EXEL develops small-molecule therapies for the treatment of cancer, and Wellington indicated in its filing that it holds 15.32 million shares or 10.3% of outstanding shares, an increase from the 12.12 million shares it held at the end of Q4.

Neurogesx Inc. (OTCPK:NGSX): NGSX is engaged in developing and commercializing novel pain management therapies, based on known chemical entities. On Monday, Fidelity Investments filed SEC Form 13G indicating that it holds 2.97 million or 10.0% of outstanding shares, a new position in its portfolio. NGSX shares have been in strong retreat since last month on negative news on its sNDA for Qutenza (Capsaicin), for the management of pain associated with HIV associated neuropathy. First, in early February, shares fell on news that the FDA panel voted 12-0 against Qutenza, and then last week shares fell again after the company received a CRL (Complete Response Letter) for its sNDA from the FDA.

Intermune Inc. (NASDAQ:ITMN): Intermune is a development-stage biotech company engaged in the development and commercialization of therapies in the areas of pulmonology and fibrotic diseases. On Monday, New York-based shareholder activist hedge fund QVT Financial, with over $1.2 billion in 13-F assets at the end of Q4, filed SEC Form 13G indicating that it holds 5.92 million or 8.9% of outstanding shares, an increase from the 5.57 million shares it held at the end of Q4. QVT has been gradually building a position in ITMN, having added 0.77 million shares in Q3 and 2.04 million shares in Q4.

General Discussion

Form 13-D is commonly referred to as the "beneficial ownership report," and is required when a person or a group of persons acquires beneficial ownership of more than 5% of the voting class of a company's equity securities; form 13-G is the abbreviated version of the form that is allowed under certain circumstances.

The information in forms 13-D and 13-G is extremely timely as it is required to be filed within 10 days after the purchase, in contrast to 13-F quarterly filings by Institutions that are filed every three months. The information contained in 13-F filings, thereby, can as much as 18 weeks old by the time it is disseminated to the public. Furthermore, by virtue of their 5% ownership in public companies, the information contained in the 13-D and 13-G filings indicates only high confidence or high conviction moves by institutions and insiders, and hence can be interpreted to be of greater relevance to the investment community than the 13-F quarterly filings. Furthermore, 13-D and 13-G filings often are a precursor to a hostile takeover, company breakups and other "change of control" events, and often they will include a letter to management explaining the reason for their taking a large stake in the company.

Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.

Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our "opinions" and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.

Source: Noteworthy Institutional 5% Ownership Filings This Week In Healthcare And Tech