Hedge Funds Have Bought The Pep Boys – Manny, Moe & Jack (PBY), Emulex Corporation (ELX), and More

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Infinity Pharmaceuticals Inc. (NASDAQ:INFI), a $790 million market cap biotechnology company (on average about 2 million shares are traded per day, making for plenty of volume), has had James Flynn’s Deerfield Management disclose ownership of 2.3 million shares. Research more picks from Deerfield Management. As a development stage biotech stock, Infinity is not expected to earn positive profits either this year or next year. It did have about $300 million in cash, cash equivalents, and liquid securities on hand in its most recent quarterly report with cash flow from operations being negative $25 million during Q1.

Freight brokerage, transportation, and logistics company XPO Logistics Inc (NYSE:XPO) has also seen attention from a fund, with Brian Bares’s Bares Capital Management increasing its ownership to over 10% of the company. Acquisitions in the freight brokerage space have made that segment the source of most of XPO’s revenue, though the company’s losses have also been increasing. Analyst expectations are for essentially zero profit in 2014, and the stock is a popular short target with 22% of the float held short. With some concern over potential integration risks as well as the poor financial performance, we don’t think XPO is a good buy.

Disclosure: I own no shares of any stocks mentioned in this article.

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