How Do Hedge Funds Feel About Axovant Sciences Ltd (AXON)?

Due to the fact that Axovant Sciences Ltd (NYSE:AXON) has experienced falling interest from the smart money, logic holds that there is a sect of hedgies that decided to sell off their positions entirely last quarter. Interestingly, Christopher James’s Partner Fund Management cut the biggest position of the 700 funds watched by Insider Monkey, comprising close to $19.4 million in stock. Richard Gerson and Navroz D. Udwadia’s fund, Falcon Edge Capital, also dumped its stock, about $17.6 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 6 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Axovant Sciences Ltd (NYSE:AXON) but similarly valued. These stocks are Plexus Corp. (NASDAQ:PLXS), Super Micro Computer, Inc. (NASDAQ:SMCI), Franklin Electric Co. (NASDAQ:FELE), and TransAlta Corporation (USA) (NYSE:TAC). This group of stocks’ market valuations are closest to AXON’s market valuation.

As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. In AXON, hedge funds reported stakes worth $1.15 billion in aggregate. Plexus Corp. (NASDAQ:PLXS) is the most popular stock in this table, while TransAlta Corporation (USA) (NYSE:TAC) is the least popular one with only 6 bullish hedge fund positions. Axovant Sciences Ltd (NYSE:AXON) 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 PLXS might be a better candidate to consider a long position.