Hedge Funds Are Coming Back to Seattle Genetics, Inc. (SGEN)

As industry-wide interest surged, some big names have jumped into Seattle Genetics, Inc. (NASDAQ:SGEN) headfirst. venBio Select Advisor, managed by Behzad Aghazadeh, created the most valuable position in Seattle Genetics, Inc. (NASDAQ:SGEN). According to its latest 13F filing, the fund had $7.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $6.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Noam Gottesman’s GLG Partners.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Seattle Genetics, Inc. (NASDAQ:SGEN) but similarly valued. We will take a look at Genpact Limited (NYSE:G), CF Industries Holdings, Inc. (NYSE:CF), China Southern Airlines Co Ltd (ADR) (NYSE:ZNH), and Westlake Chemical Corporation (NYSE:WLK). All of these stocks’ market caps resemble SGEN’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $503 million. That figure was a whooping $2.63 billion in SGEN’s case. CF Industries Holdings, Inc. (NYSE:CF) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (ADR) (NYSE:ZNH) is the least popular one with only 3 bullish hedge fund positions. Seattle Genetics, Inc. (NASDAQ:SGEN) 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 CF might be a better candidate to consider taking a long position in.

Disclosure: None