Do Hedge Funds Love Merrimack Pharmaceuticals Inc (MACK)?

Because Merrimack Pharmaceuticals Inc (NASDAQ:MACK) has witnessed a decline in interest from hedge fund managers, it’s easy to see that there was a specific group of hedge funds that decided to sell off their full holdings last quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the “upper crust” of funds tracked by Insider Monkey, worth close to $14.9 million in stock. Israel Englander’s fund, Millennium Management, also dumped its stock, about $3.2 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Merrimack Pharmaceuticals Inc (NASDAQ:MACK) but similarly valued. We will take a look at Videocon d2h Ltd – ADR (NASDAQ:VDTH), Capstead Mortgage Corporation (NYSE:CMO), US Ecology Inc. (NASDAQ:ECOL), and Callidus Software Inc. (NASDAQ:CALD). This group of stocks’ market valuations are similar to MACK’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $108 million. That figure was $15 million in MACK’s case. Videocon d2h Ltd – ADR (NASDAQ:VDTH) and Callidus Software Inc. (NASDAQ:CALD) are the most popular stocks in this table. On the other hand Capstead Mortgage Corporation (NYSE:CMO) is the least popular one with only 7 bullish hedge fund positions. Merrimack Pharmaceuticals Inc (NASDAQ:MACK) 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 VDTH might be a better candidate to consider a long position.