ACADIA Pharmaceuticals Inc. (ACAD): Are Hedge Funds Right About This Stock?

Due to the fact that ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) has faced falling interest from the smart money, it’s safe to say that there exists a select few hedge funds who were dropping their positions entirely in the third quarter. It’s worth mentioning that Paul Sinclair’s Blue Jay Capital Management sold off the biggest position of the 700 funds monitored by Insider Monkey, worth close to $12.6 million in stock. Richard Driehaus’ fund, Driehaus Capital, also dumped its stock, about $2.5 million worth. These transactions are interesting, as total hedge fund interest dropped by 2 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) but similarly valued. We will take a look at Owens-Illinois Inc (NYSE:OI), Companhia Brasileira de Distrib. (ADR) (NYSE:CBD), Radian Group Inc (NYSE:RDN), and Corelogic Inc (NYSE:CLGX). This group of stocks’ market valuations match ACAD’s market valuation.

As you can see these stocks had an average of 23.5 hedge funds with bullish positions and the average amount invested in these stocks was $521 million. That figure was $934 million in ACAD’s case. Radian Group Inc (NYSE:RDN) is the most popular stock in this table. On the other hand Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) is the least popular one with only 8 bullish hedge fund positions. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) 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 RDN might be a better candidate to consider a long position.