Here is What Hedge Funds Think About SCYNEXIS Inc (SCYX)

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as SCYNEXIS Inc (NASDAQ:SCYX) but similarly valued. These stocks are Lakeland Industries, Inc. (NASDAQ:LAKE), Nicholas Financial, Inc. (NASDAQ:NICK), Managed High Yield Plus Fund Inc. (NYSE:HYF), and BRT Realty Trust (NYSE:BRT). This group of stocks’ market valuations resemble SCYX’s market valuation.

As you can see these stocks had an average of 4.5 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $21 million in SCYX’s case. Lakeland Industries, Inc. (NASDAQ:LAKE) is the most popular stock in this table. On the other hand Nicholas Financial, Inc. (NASDAQ:NICK) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks SCYNEXIS Inc (NASDAQ:SCYX) is 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.