Is Mediwound Ltd (MDWD) A Good Stock To Buy?

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Between June 25 and October 30th the Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 14 percentage points as investors worried over the possible ramifications of rising interest rates. The hedge funds and institutional investors we track typically invest more in smaller-cap stocks than an average investor, and we have seen data that shows those funds paring back their overall exposure. Those funds cutting positions in small-caps is one reason why volatility has increased. In the following paragraphs, we take a closer look at what hedge funds and prominent investors think of Mediwound Ltd (NASDAQ:MDWD) and see how the stock is affected by the recent hedge fund activity.

Mediwound Ltd (NASDAQ:MDWD) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds’ portfolios at the end of the third quarter of 2015. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as First Security Group Inc (NASDAQ:FSGI), Numerex Corp. (NASDAQ:NMRX), and CARDIOME PHARMA CORP (NASDAQ:CRME) to gather more data points.

In today’s marketplace, there are a large number of tools shareholders use to grade their holdings. A couple of the less known tools are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the top picks of the elite money managers can beat the market by a significant margin (see the details here).

Keeping this in mind, we’re going to take a glance at the latest action encompassing Mediwound Ltd (NASDAQ:MDWD).

What have hedge funds been doing with Mediwound Ltd (NASDAQ:MDWD)?

Heading into Q4, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the second quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Kevin Kotler’s Broadfin Capital has the largest position in Mediwound Ltd (NASDAQ:MDWD), worth close to $3.9 million, amounting to 0.2% of its total 13F portfolio. Sitting at the No. 2 spot is Mark Kingdon of Kingdon Capital, with a $2.4 million position; 0.1% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish contain Julian Baker and Felix Baker’s Baker Bros. Advisors, Ken Griffin’s Citadel Investment Group, and Renaissance Technologies.

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