What Do Hedge Funds Think of Exelixis, Inc. (EXEL)?

Consequently, key money managers have been driving this bullishness. Great Point Partners, managed by Jeffrey Jay and David Kroin, assembled the largest position in Exelixis, Inc. (NASDAQ:EXEL). Great Point Partners had $8.9 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also initiated a $4.6 million position during the quarter. The other funds with new positions in the stock are Richard Driehaus’s Driehaus Capital, Peter Muller’s PDT Partners, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to Exelixis, Inc. (NASDAQ:EXEL). These stocks are Archrock Inc. (NYSE:AROC), KB Home (NYSE:KBH), Vonage Holdings Corp. (NYSE:VG), and Cohen & Steers, Inc. (NYSE:CNS). This group of stocks’ market valuations resemble EXEL’s market valuation.

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $227 million. That figure was $40 million in EXEL’s case. Archrock Inc. (NYSE:AROC) is the most popular stock in this table. On the other hand Cohen & Steers, Inc. (NYSE:CNS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Exelixis, Inc. (NASDAQ:EXEL) is even less popular than CNS. 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.