Hedge Funds Are Selling Avalanche Biotechnologies Inc (AAVL)

Due to the fact that Avalanche Biotechnologies Inc (NASDAQ: AAVL) has experienced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of funds that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Samuel Isaly’s OrbiMed Advisors sold off the largest investment of all the hedgies monitored by Insider Monkey, comprising close to $4.1 million in call options., and Israel Englander’s Millennium Management was right behind this move, as the fund cut about $3.4 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Avalanche Biotechnologies Inc (NASDAQ:AAVL). These stocks are Sparton Corporation (NYSE:SPA), Johnson Outdoors Inc. (NASDAQ:JOUT), Western Asset Managed High Incm Fnd Inc. (NYSE:MHY), and Castle Brands Inc (NYSEAMEX:ROX). This group of stocks’ market valuations are similar to AAVL’s market valuation.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $13 million, below the $55 million in AAVL’s case. Sparton Corporation (NYSE:SPA) is the most popular stock in this table, with a total of 6 funds reporting stakes, while Johnson Outdoors Inc. (NASDAQ:JOUT) is the least popular one. Compared to these stocks Avalanche Biotechnologies Inc (NASDAQ:AAVL) is much more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.