Is Momenta Pharmaceuticals, Inc. (MNTA) A Good Stock To Buy?

As industrywide interest jumped, key money managers have been driving this bullishness. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, assembled the biggest position in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). Arrowstreet Capital had $6.9 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.3 million position during the quarter. The following funds were also among the new MNTA investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, Paul Tudor Jones’s Tudor Investment Corp, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). We will take a look at Asanko Gold Inc (NYSEAMEX:AKG), Barnes & Noble, Inc. (NYSE:BKS), ARMOUR Residential REIT, Inc. (NYSE:ARR), and Dominion Diamond Corp (NYSE:DDC). This group of stocks’ market valuations resemble MNTA’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $136 million in MNTA’s case. Barnes & Noble, Inc. (NYSE:BKS) is the most popular stock in this table. On the other hand ARMOUR Residential REIT, Inc. (NYSE:ARR) is the least popular one with only 6 bullish hedge fund positions. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) 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 BKS might be a better candidate to consider taking a long position in.

Disclosure: None