Do Hedge Funds Love MacroGenics Inc (MGNX)?

Page 2 of 2

Seeing as MacroGenics Inc (NASDAQ:MGNX) has experienced falling interest from hedge fund managers, it’s easy to see that there were a few funds that slashed their entire stakes last quarter. At the top of the heap, First Eagle Investment Management cut the biggest investment of the 700 funds studied by Insider Monkey, valued at close to $6 million in stock, and Mark Lampert’s Biotechnology Value Fund / BVF Inc was right behind this move, as the fund sold off about $5.4 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as MacroGenics Inc (NASDAQ:MGNX) but similarly valued. We will take a look at Clayton Williams Energy, Inc. (NASDAQ:CWEI), NCI Building Systems, Inc. (NYSE:NCS), Stewart Information Services Corp (NYSE:STC), and ACCO Brands Corporation (NYSE:ACCO). All of these stocks’ market caps are closest to MGNX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CWEI 13 210513 3
NCS 23 143041 3
STC 20 308945 6
ACCO 20 40676 1

As you can see these stocks had an average of 19 investors with bullish positions and the average amount invested in these stocks was $176 million, versus $167 million in MGNX’s case. NCI Building Systems, Inc. (NYSE:NCS) is the most popular stock in this table. On the other hand Clayton Williams Energy, Inc. (NASDAQ:CWEI) is the least popular one with only 13 funds holding shares. MacroGenics Inc (NASDAQ:MGNX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NCI Building Systems, Inc. (NYSE:NCS) might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2