How Is Smart Money Trading Xenon Pharmaceuticals Inc (XENE)?

Since Xenon Pharmaceuticals Inc (NASDAQ:XENE) has experienced a falling interest from hedge fund managers, logic holds that there lies a certain “tier” of hedgies who were dropping their entire stakes last quarter. Interestingly, Oleg Nodelman’s EcoR1 Capital dropped the biggest position of all the hedgies monitored by Insider Monkey, valued at an estimated $0.8 million in stock. Ken Greenberg and David Kim’s fund, Ghost Tree Capital, also dropped its stock, about $0.4 million worth of shares. These transactions are important to note, as total hedge fund interest was cut by 1 fund last quarter.

Let’s also examine hedge fund activity in other stocks similar to Xenon Pharmaceuticals Inc (NASDAQ:XENE). We will take a look at Hugoton Royalty Trust (NYSE:HGT), Hardinge Inc. (NASDAQ:HDNG), Provectus Biopharmaceuticals Inc (NYSEMKT:PVCT), and ArQule, Inc. (NASDAQ:ARQL). This group of stocks’ market caps is closest to Xenon Pharmaceuticals Inc (NASDAQ:XENE)’s market cap.

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $22 million in XENE’s case. ArQule, Inc. (NASDAQ:ARQL) is the most popular stock in this table. On the other hand, Provectus Biopharmaceuticals Inc (NYSEMKT:PVCT) is the least popular one, with only 4 bullish hedge fund positions. Xenon Pharmaceuticals Inc (NASDAQ:XENE) 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, ArQule, Inc. (NASDAQ:ARQL) might be a better candidate to consider a long position.