Here is What Hedge Funds Think About Foundation Medicine Inc (FMI)

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As one would reasonably expect, specific money managers were breaking ground themselves. Point72 Asset Management, led by Steve Cohen, created the biggest position in Foundation Medicine Inc (NASDAQ:FMI). According to regulatory filings, the fund had $2.5 million invested in the company at the end of the quarter. William Harnisch’s Peconic Partners LLC also initiated a $2.1 million position during the quarter. The following funds were also among the new FMI investors: D E Shaw, one of the biggest hedge funds in the world, Matthew Hulsizer’s PEAK6 Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks similar to Foundation Medicine Inc (NASDAQ:FMI). We will take a look at Independent Bank Group Inc (NASDAQ:IBTX), Apptio Inc (NASDAQ:APTI), Meridian Bioscience, Inc. (NASDAQ:VIVO), and Blueprint Medicines Corp (NASDAQ:BPMC). This group of stocks’ market valuations match FMI’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IBTX 9 27629 -3
APTI 14 10673 14
VIVO 16 61352 -3
BPMC 16 195024 4

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $74 million. That figure was $28 million in FMI’s case. Meridian Bioscience, Inc. (NASDAQ:VIVO) is the most popular stock in this table. On the other hand Independent Bank Group Inc (NASDAQ:IBTX) is the least popular one with only 9 bullish hedge fund positions. Foundation Medicine Inc (NASDAQ:FMI) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VIVO might be a better candidate to consider taking a long position in.

Disclosure: None


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