Is Foamix Pharmaceuticals Ltd (FOMX) Going to Burn These Hedge Funds?

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Consequently, key hedge funds have been driving this bullishness. RA Capital Management, led by Peter Kolchinsky, established the biggest position in Foamix Pharmaceuticals Ltd (NASDAQ:FOMX). RA Capital Management had $16.9 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also made a $1.5 million investment in the stock during the quarter. The other funds with brand new FOMX positions are Hal Mintz’s Sabby Capital, Mike Vranos’ Ellington, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks similar to Foamix Pharmaceuticals Ltd (NASDAQ:FOMX). We will take a look at PHI Inc. (NASDAQ:PHIIK), Zogenix, Inc. (NASDAQ:ZGNX), Hooker Furniture Corporation (NASDAQ:HOFT), and Oxford Immunotec Global PLC (NASDAQ:OXFD). All of these stocks’ market caps match FOMX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PHIIK 9 76716 0
ZGNX 18 102468 5
HOFT 10 67517 0
OXFD 9 58923 2

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was $124 million in FOMX’s case. Zogenix, Inc. (NASDAQ:ZGNX) is the most popular stock in this table. On the other hand PHI Inc. (NASDAQ:PHIIK) is the least popular one with only 9 bullish hedge fund positions. Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) 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 ZGNX might be a better candidate to consider taking a long position in.

Disclosure: None

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