Hedge Funds Are Dumping Flamel Technologies S.A. (ADR) (FLML)

Seeing as Flamel Technologies S.A. (ADR) (NASDAQ:FLML) has faced a falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that decided to sell off their full holdings in the third quarter. At the top of the heap, Behzad Aghazadeh’s venBio Select Advisor cut the biggest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $5.7 million in stock. Thomas Bailard’s fund, Bailard Inc, also dumped its stock, about $3.3 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 4 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Flamel Technologies S.A. (ADR) (NASDAQ:FLML). These stocks are Intersect ENT Inc (NASDAQ:XENT), Eastman Kodak Co. (NYSE:KODK), Cincinnati Bell Inc. (NYSE:CBB), and NII Holdings, Inc. (NASDAQ:NIHD). This group of stocks’ market valuations is closest to Flamel Technologies S.A. (ADR) (NASDAQ:FLML)’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 $96 million. That figure was $190 million in Flamel Technologies S.A. (ADR) (NASDAQ:FLML)’s case. Intersect ENT Inc (NASDAQ:XENT) is the most popular stock in this table. On the other hand, NII Holdings, Inc. (NASDAQ:NIHD) is the least popular one with only 8 bullish hedge fund positions. Flamel Technologies S.A. (ADR) (NASDAQ:FLML) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Flamel Technologies S.A. (ADR) (NASDAQ:FLML) might be a better candidate to consider a long position.