Hedge Funds Are Selling Zix Corporation (ZIXI)

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Due to the fact that Zix Corporation (NASDAQ:ZIXI) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of fund managers that slashed their positions entirely by the end of the third quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest stake of the “upper crust” of funds followed by Insider Monkey, worth about $0.2 million in stock. Mike Vranos’s fund, Ellington, also dropped its stock, about $0.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Zix Corporation (NASDAQ:ZIXI). These stocks are Anthera Pharmaceuticals Inc (NASDAQ:ANTH), World Acceptance Corp. (NASDAQ:WRLD), Viate Pharmaceuticals Inc (NASDAQ:VTAE), and Aquinox Pharmaceuticals Inc (NASDAQ:AQXP). This group of stocks’ market valuations are closest to ZIXI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ANTH 14 33309 3
WRLD 17 47604 -1
VTAE 15 74982 6
AQXP 13 151616 4

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $24 million in ZIXI’s case. World Acceptance Corp. (NASDAQ:WRLD) is the most popular stock in this table, while Aquinox Pharmaceuticals Inc (NASDAQ:AQXP) is the least popular one with only 13 bullish hedge fund positions. Zix Corporation (NASDAQ:ZIXI) 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 WRLD might be a better candidate to consider a long position.

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