Is PDL BioPharma Inc (PDLI) Going to Burn These Hedge Funds?

With a general bullishness amongst the heavyweights, key money managers have jumped into PDL BioPharma Inc (NASDAQ:PDLI) headfirst. Armistice Capital, led by Steven Boyd, created the biggest position in PDL BioPharma Inc (NASDAQ:PDLI). Armistice Capital had $8.8 million invested in the company at the end of the quarter. Jeffrey Jay and David Kroin’s Great Point Partners also initiated a $2.2 million position during the quarter. The other funds with new positions in the stock are Glenn Russell Dubin’s Highbridge Capital Management, Paul Orlin and Alex Porter’s Amici Capital, and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.

Let’s go over hedge fund activity in other stocks similar to PDL BioPharma Inc (NASDAQ:PDLI). We will take a look at Global Eagle Acquisition Corp (NASDAQ:ENT), Nuveen Floating Rate Income Fund (NYSE:JFR), Intrawest Resorts Holdings Inc (NYSE:SNOW), and Mercer International Inc. (NASDAQ:MERC). All of these stocks’ market caps are similar to PDLI’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $130 million. That figure was $81 million in PDLI’s case. Mercer International Inc. (NASDAQ:MERC) is the most popular stock in this table. On the other hand Nuveen Floating Rate Income Fund (NYSE:JFR) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks PDL BioPharma Inc (NASDAQ:PDLI) 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