Hedge Funds Are Selling Synutra International, Inc. (SYUT)

Due to the fact that Synutra International, Inc. (NASDAQ:SYUT) has faced a bearish sentiment from the aggregate hedge fund industry, we can see that there exists a select few hedgies who were dropping their full holdings in the third quarter. At the top of the heap, Rob Romero’s Connective Capital Management cut the biggest position of the 700 funds followed by Insider Monkey, valued at an estimated $0.7 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $0.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest fell by 1 fund in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Synutra International, Inc. (NASDAQ:SYUT) but similarly valued. These stocks are Lion Biotechnologies Inc (NASDAQ:LBIO), Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), York Water Company (NASDAQ:YORW), and Akarti Therapeutics PLC (ADR) (NASDAQ:AKTX). This group of stocks’ market valuations is closest to Synutra International, Inc. (NASDAQ:SYUT)’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 $45 million. That figure was $1 million in Synutra International, Inc. (NASDAQ:SYUT)’s case. Lion Biotechnologies Inc (NASDAQ:LBIO) is the most popular stock in this table. On the other hand. York Water Company (NASDAQ:YORW) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Synutra International, Inc. (NASDAQ:SYUT) is even less popular than York Water Company (NASDAQ:YORW). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.