Is Retrophin Inc (RTRX) A Good Stock To Buy?

As industrywide interest jumped, key money managers were leading the bulls’ herd. Kingdon Capital, managed by Mark Kingdon, established the largest position in Retrophin Inc (NASDAQ:RTRX). Kingdon Capital had $8.5 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also initiated a $5.6 million position during the quarter. The other funds with brand new RTRX positions are Siddharth Thacker’s Signpost Capital, Lee Ainslie’s Maverick Capital, and Stuart Weisbrod’s Iguana Healthcare Management.

Let’s go over hedge fund activity in other stocks similar to Retrophin Inc (NASDAQ:RTRX). We will take a look at Rent-A-Center Inc (NASDAQ:RCII), SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN), Triangle Capital Corporation (NYSE:TCAP), and United Financial Bancorp, Inc. (NASDAQ:UBNK). This group of stocks’ market valuations resemble RTRX’s market valuation.

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $400 million in RTRX’s case. SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) is the most popular stock in this table. On the other hand Triangle Capital Corporation (NYSE:TCAP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Retrophin Inc (NASDAQ:RTRX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have a lot more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None