Has the Smart Money Unearthed a Hidden Gem in Myriad Genetics, Inc. (MYGN)?

Because Myriad Genetics, Inc. (NASDAQ:MYGN) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedge funds that decided to sell off their full holdings heading into Q4. At the top of the heap, David Cohen and Harold Levy’s Iridian Asset Management sold off the biggest investment of all the hedgies watched by Insider Monkey, totaling close to $98.4 million in stock. First Eagle Investment Management also sold off its stock, amounting to about $11.3 million worth of MYGN shares. These transactions are important to note, as aggregate hedge fund interest fell by 4 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Myriad Genetics, Inc. (NASDAQ:MYGN). We will take a look at Washington Real Estate Investment Trust (NYSE:WRE), Covanta Holding Corporation (NYSE:CVA), Texas Capital Bancshares Inc (NASDAQ:TCBI), and Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). This group of stocks’ market valuations are similar to MYGN’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $236 million. That figure was $357 million in MYGN’s case. Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) is the most popular stock in this table. On the other hand Covanta Holding Corporation (NYSE:CVA) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Myriad Genetics, Inc. (NASDAQ:MYGN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, despite the recent dip in ownership.

Disclosure: None