Is OncoMed Pharmaceuticals Inc (OMED) Going to Burn These Hedge Funds?

Now, key money managers were breaking ground themselves. EcoR1 Capital, led by Oleg Nodelman, initiated the largest position in OncoMed Pharmaceuticals Inc (NASDAQ:OMED). According to its latest 13F filing, the fund had $3 million invested in the company at the end of the quarter. Renaissance Technologies, one of the largest hedge funds in the world, also made a $2.9 million investment in the stock during the quarter. The following funds were also among the new OMED investors: Behzad Aghazadeh’s venBio Select Advisor, Warren Lammert’s Granite Point Capital, and Stuart Weisbrod’s Iguana Healthcare Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as OncoMed Pharmaceuticals Inc (NASDAQ:OMED) but similarly valued. We will take a look at Organovo Holdings Inc (NYSEMKT:ONVO), Karyopharm Therapeutics Inc (NASDAQ:KPTI), Bank Mutual Corporation (NASDAQ:BKMU), and Corenergy Infrastructure Trust Inc (NYSE:CORR). This group of stocks’ market values resemble OMED’s market value.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $57 million in OMED’s case. Organovo Holdings Inc (NYSEMKT:ONVO) is the most popular stock in this table. On the other hand Bank Mutual Corporation (NASDAQ:BKMU) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks OncoMed Pharmaceuticals Inc (NASDAQ:OMED) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.