Is Medgenics Inc (MDGN) Going to Burn Investors?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. Intriguingly, Anand Parekh’s Alyeska Investment Group dropped the largest stake of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $0.6 million in stock, and Paul Tudor Jones’ Tudor Investment Corp was right behind this move, as the fund said goodbye to about $0.4 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Medgenics Inc (NASDAQ:MDGN) but similarly valued. We will take a look at Evolution Petroleum Corporation (NYSEAMEX:EPM), Newtek Business Services, Inc (NASDAQ:NEWT), West Marine, Inc. (NASDAQ:WMAR), and eHealth, Inc. (NASDAQ:EHTH). This group of stocks’ market valuations match MDGN’s market valuation.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $34 million. That figure was $51 million in MDGN’s case. eHealth, Inc. (NASDAQ:EHTH) is the most popular stock in this table. On the other hand Evolution Petroleum Corporation (NYSEAMEX:EPM) is the least popular one with only 6 bullish hedge fund positions. Medgenics Inc (NASDAQ:MDGN) 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 EHTH might be a better candidate to consider taking a long position in.

Disclosure: None