Is Alder Biopharmaceuticals Inc (ALDR) A Good Stock To Buy?

Consequently, specific money managers have been driving this bullishness. Redmile Group assembled the biggest position in Alder Biopharmaceuticals Inc (NASDAQ:ALDR). Redmile Group had $23 million invested in the company at the end of the quarter. Stuart Weisbrod’s Iguana Healthcare Management also made a $2.5 million investment in the stock during the quarter. The other funds with new positions in the stock are John Paulson’s Paulson & Co, David E. Shaw’s D E Shaw, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s also examine hedge fund activity in other stocks similar to Alder Biopharmaceuticals Inc (NASDAQ:ALDR). These stocks are Steelcase Inc. (NYSE:SCS), Sabra Health Care REIT Inc (NASDAQ:SBRA), Ophthotech Corp (NASDAQ:OPHT), and Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA). This group of stocks’ market valuations resemble ALDR’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $262 million. That figure was $311 million in ALDR’s case. Ophthotech Corp (NASDAQ:OPHT) is the most popular stock in this table. On the other hand Sabra Health Care REIT Inc (NASDAQ:SBRA) is the least popular one with only 12 bullish hedge fund positions. Alder Biopharmaceuticals Inc (NASDAQ:ALDR) 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 OPHT might be a better candidate to consider taking a long position in.

Disclosure: None