GenMark Diagnostics, Inc (GNMK): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Millennium Management, founded by Israel Englander, established the largest position in GenMark Diagnostics, Inc (NASDAQ:GNMK). Millennium Management had $6.6 million invested in the company at the end of the quarter. Zach Schreiber’s Point State Capital also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new GNMK investors: Jim Simons’ Renaissance Technologies, Ken Griffin’s Citadel Investment Group, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s also examine hedge fund activity in other stocks similar to GenMark Diagnostics, Inc (NASDAQ:GNMK). These stocks are Enanta Pharmaceuticals Inc (NASDAQ:ENTA), Hostess Brands Inc (NASDAQ:GRSH), Changyou.Com Ltd (ADR) (NASDAQ:CYOU), and Capital Senior Living Corporation (NYSE:CSU). This group of stocks’ market valuations match GNMK’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $120 million. That figure was $97 million in GNMK’s case. Hostess Brands Inc (NASDAQ:GRSH) is the most popular stock in this table. On the other hand Enanta Pharmaceuticals Inc (NASDAQ:ENTA) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks GenMark Diagnostics, Inc (NASDAQ:GNMK) is even less popular than ENTA. 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.

Disclosure: None