Derma Sciences Inc (DSCI): Smart Money Continues to Abandon the Stock

Seeing as Derma Sciences Inc (NASDAQ:DSCI) has faced falling interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Richard Mashaal’s RIMA Senvest Management dumped the biggest stake of all the hedgies watched by Insider Monkey, valued at close to $0.9 million in stock. Phill Gross and Robert Atchinson’s fund, Adage Capital Management, also cut its stock, about $0.4 million worth.

Let’s also examine hedge fund activity in other stocks similar to Derma Sciences Inc (NASDAQ:DSCI). These stocks are Anthera Pharmaceuticals Inc (NASDAQ:ANTH), Virtus Total Return Fund (NYSE:DCA), Anavex Life Sciences Corp. (NASDAQ:AVXL), and Endocyte, Inc. (NASDAQ:ECYT). This group of stocks’ market valuations are similar to DSCI’s market valuation.

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 $12 million. That figure was $36 million in DSCI’s case. Anthera Pharmaceuticals Inc (NASDAQ:ANTH) is the most popular stock in this table. On the other hand Virtus Total Return Fund (NYSE:DCA) is the least popular one with only 4 bullish hedge fund positions. Derma Sciences Inc (NASDAQ:DSCI) is tied as the most popular stock in this group and has more money invested in it than any of the stocks on the list, but hedge fund interest is falling. This is a slightly positive signal overall, but we’d rather spend our time researching stocks that have better recent sentiment. In this regard ANTH might be a better candidate to consider taking a long position in.

Disclosure: None