How Are Hedge Funds Feeling About Fibrocell Science Inc (FCS)?

Is Fibrocell Science Inc (NASDAQ:FCSC) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is Fibrocell Science Inc (NASDAQ:FCSC) a great investment right now? The smart money is turning bullish. The number of long hedge fund positions has improved by 1 lately. At the end of this article we will also compare FCSC to other stocks, including TriplePoint Venture Growth BDC Corp (NYSE:TPVG), TrovaGene Inc (NASDAQ:TROV), and Tobira Therapeutics Inc (NASDAQ:TBRA) to get a better sense of its popularity.

To the average investor there are many metrics stock traders use to value publicly traded companies. A duo of the most innovative metrics are hedge fund and insider trading signals. we have shown that, historically, those who follow the best picks of the best money managers can trounce the market by a superb margin (see the details here).

With all of this in mind, let’s check out the latest action encompassing Fibrocell Science Inc (NASDAQ:FCSC).

Hedge fund activity in Fibrocell Science Inc (NASDAQ:FCS)

At the end of the third quarter, a total of four of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management has the most valuable position in Fibrocell Science Inc (NASDAQ:FCS), worth close to $7.7 million, accounting for 0.3% of its total 13F portfolio. Sitting at the No. 2 spot is Daniel Gold of QVT Financial, with an $7.2 million position; 0.2% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish comprise Adam Usdan’s Trellus Management Company, Michael Kao’s Akanthos Capital and .

Now, key hedge funds were leading the bulls’ herd. QVT Financial assembled the biggest position in Fibrocell Science Inc (NASDAQ:FCS), while Akanthos Capital also made an $0.2 million investment in the stock during the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Fibrocell Science Inc (NASDAQ:FCS) but similarly valued. These stocks are TriplePoint Venture Growth BDC Corp (NYSE:TPVG), TrovaGene Inc (NASDAQ:TROV), Tobira Therapeutics Inc (NASDAQ:TBRA), and Nathan’s Famous, Inc. (NASDAQ:NATH). All of these stocks’ market caps match FCSC’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $16 million in FCSC’s case. Nathan’s Famous, Inc. (NASDAQ:NATH) is the most popular stock in this table, while TriplePoint Venture Growth BDC Corp (NYSE:TPVG) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Fibrocell Science Inc (NASDAQ:FCS) is even less popular than TPVG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.