Should You Avoid AcelRx Pharmaceuticals Inc (ACRX)?

However, due to the fact that AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) has experienced a decline in interest from hedge fund managers, it’s safe to say that there was a specific group of hedge funds that decided to sell off their entire stakes heading into Q4. Interestingly, William Michaelcheck’s Mariner Investment Group sold off the biggest stake of all the hedgies monitored by Insider Monkey, comprising an estimated $0.3 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $0.1 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 2 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to AcelRx Pharmaceuticals Inc (NASDAQ:ACRX). These stocks are Cherokee Inc. (NASDAQ:CHKE), Global Partner Acquisition Corp. (NASDAQ:GPAC), hhgregg, Inc. (NYSE:HGG), and Sharps Compliance Corp. (NASDAQ:SMED). This group of stocks’ market valuations are closest to ACRX’s market valuation.

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 $27 million. That figure was $29 million in ACRX’s case. Global Partner Acquisition Corp. (NASDAQ:GPAC) is the most popular stock in this table with a total of nine funds reporting long positions. On the other hand Sharps Compliance Corp. (NASDAQ:SMED) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) 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.