Is Aquinox Pharmaceuticals Inc (AQXP) A Good Stock To Buy?

As one would reasonably expect, key money managers were leading the bulls’ herd. Ghost Tree Capital, led by Ken Greenberg and David Kim, initiated the biggest position in Aquinox Pharmaceuticals Inc (NASDAQ:AQXP). Ghost Tree Capital had $3.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.3 million position during the quarter. The following funds were also among the new AQXP investors: Nathan Fischel’s DAFNA Capital Management, Mike Vranos’ Ellington, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Aquinox Pharmaceuticals Inc (NASDAQ:AQXP) but similarly valued. We will take a look at Luxfer Holdings PLC (ADR) (NYSE:LXFR), FRP Holdings Inc (NASDAQ:FRPH), Davids Tea Inc (NASDAQ:DTEA), and Silicom Ltd. (NASDAQ:SILC). This group of stocks’ market caps resemble AQXP’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $34 million. That figure was $191 million in AQXP’s case. Luxfer Holdings PLC (ADR) (NYSE:LXFR) is the most popular stock in this table. On the other hand Davids Tea Inc (NASDAQ:DTEA) is the least popular one with only 4 bullish hedge fund positions. Aquinox Pharmaceuticals Inc (NASDAQ:AQXP) is the most popular stock in this group. We believe investors should take a closer look at the stock and consider increasing their exposure.

Disclosure: None