Consequently, key money managers were leading the bulls’ herd. OrbiMed Advisors, led by Samuel Isaly, initiated the most valuable position in Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR). Peter Kolchinsky’s RA Capital Management also initiated an $11.2 million position during the quarter. The following funds were also among the new ARWR investors: Joseph Edelman’s Perceptive Advisors, Lei Zhang’s Hillhouse Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) but similarly valued. These stocks are Zumiez Inc. (NASDAQ:ZUMZ), Peoples Bancorp Inc. (NASDAQ:PEBO), Sorrentto Therapeutics Inc (NASDAQ:SRNE), and Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX). This group of stocks’ market valuations are closest to ARWR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ZUMZ | 6 | 15097 | 1 |
| PEBO | 4 | 6404 | 1 |
| SRNE | 5 | 50338 | 0 |
| PGNX | 16 | 121557 | 4 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $71 million in ARWR’s case. Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) is the most popular stock in this table. On the other hand Peoples Bancorp Inc. (NASDAQ:PEBO) is the least popular one with only 4 bullish hedge fund positions. Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PGNX might be a better candidate to consider taking a long position in.
Disclosure: none.
