Hedge Funds Are Dumping Ultragenyx Pharmaceutical Inc (RARE)

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. Interestingly, Ken Griffin’s Citadel Investment Group dumped the largest position of the 700 funds followed by Insider Monkey, valued at close to $0.5 million in call options. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dumped its stock, about $0.4 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) but similarly valued. We will take a look at Urban Edge Properties (NYSE:UE), PIMCO Dynamic Credit Income Fund (NYSE:PCI), Metals USA Holdings Corp (NYSE:MUSA), and ProAssurance Corporation (NYSE:PRA). This group of stocks’ market valuations resemble RARE’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $163 million in RARE’s case. Metals USA Holdings Corp (NYSE:MUSA) is the most popular stock in this table. On the other hand PIMCO Dynamic Credit Income Fund (NYSE:PCI) is the least popular one with only 3 bullish hedge fund positions. Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) 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 MUSA might be a better candidate to consider taking a long position in.

Disclosure: None