Hedge Funds Are Crazy About Enanta Pharmaceuticals Inc (ENTA)

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Ghost Tree Capital initiated the biggest position in Enanta Pharmaceuticals Inc (NASDAQ:ENTA). According to its latest 13F filing, the fund had $6.7 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $2.3 million investment in the stock during the quarter. The following funds were also among the new ENTA investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Enanta Pharmaceuticals Inc (NASDAQ:ENTA) but similarly valued. We will take a look at Hostess Brands Inc (NASDAQ:GRSH), Changyou.Com Ltd (ADR) (NASDAQ:CYOU), Capital Senior Living Corporation (NYSE:CSU), and Tejon Ranch Company (NYSE:TRC). All of these stocks’ market caps resemble ENTA’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $135 million. That figure was $66 million in ENTA’s case. Hostess Brands Inc (NASDAQ:GRSH) is the most popular stock in this table. On the other hand Tejon Ranch Company (NYSE:TRC) is the least popular one with only 7 bullish hedge fund positions. Enanta Pharmaceuticals Inc (NASDAQ:ENTA) 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 GRSH might be a better candidate to consider taking a long position in.

Disclosure: none.