Is Aldeyra Therapeutics Inc (ALDX) Going to Burn These Hedge Funds?

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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 check out hedge fund activity in other stocks – not necessarily in the same industry as Aldeyra Therapeutics Inc (NASDAQ:ALDX) but similarly valued. We will take a look at Amtech Systems, Inc. (NASDAQ:ASYS), Comstock Mining, Inc. (NYSEAMEX:LODE), Cyren Ltd (NASDAQ:CYRN), and Barington/Hilco Acquisition Corp. Common Stock (NASDAQ:BHAC). This group of stocks’ market values match ALDX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ASYS 4 9742 0
LODE 4 3173 -1
CYRN 5 10683 2
BHAC 4 5896 0

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $13 million in ALDX’s case. Cyren Ltd (NASDAQ:CYRN) is the most popular stock in this table, while Aldeyra Therapeutics Inc (NASDAQ:ALDX) 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.

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