Pandora and More: Hedge Funds Have Bought These Stocks Recently

BioDelivery Sciences International, Inc. (NASDAQ:BDSI), a $130 million market cap biotechnology company (its average daily dollar volume appears to be over $1 million) had Adage Capital Management report owning 2.3 million shares (a bit over 6% of the company). See what other stocks Adage likes. Adage is co-managed by Phil Gross and Robert Atchinson, who had previously worked at Harvard Management. BioDelivery Sciences is up about 300% in the last year, though as a development stage biotech company it is unprofitable and even its revenues are quite low.

David Abrams’ Abrams Capital Management bought close to 70,000 shares of Engility Holdings Inc (NYSE:EGL), bringing its position to 2.5 million shares (up from 2.2 million at the beginning of the quarter). Research more stocks Abrams likes. Engility is an engineering company providing services to federal government agencies including the Department of Defense. The stock is up 4% from its price recently after its July IPO. Wall Street analysts like the company, and so the current price is 7 times forward earnings estimates. However, revenue has been down and we’re not sure what impact a reduction in federal spending (especially defense spending) would have on the company.

Sprott Asset Management, managed by Eric Sprott, owned 4.2 million shares of Ghana gold miner Keegan Resources Inc. (NYSE:KGN). The $310 million market cap company (again, average daily dollar volume over the last three months seems to come out to over $1 million) is primarily in an exploratory phase and so cannot really be analyzed relative to its earnings. Sprott had owned 3 million shares at the end of the third quarter according to its 13F filing (find more stocks Sprott owned). We’d prefer to look at more mature gold miners; Barrick Gold (NYSE:ABX) trades at only 10 times trailing earnings, for example, and might make a better buy than Keegan or a gold ETF.