Should You Avoid Wright Medical Group NV (TRNX)?

Seeing as Wright Medical Group NV (NASDAQ:TRNX) has experienced a decline in interest from hedge fund managers, we can see that there exists a select few hedgies who were dropping their entire stakes heading into Q4. It’s worth mentioning that Samuel Isaly’s OrbiMed Advisors cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $120.1 million in stock, and Brian Taylor’s Pine River Capital Management was right behind this move, as the fund sold off about $7.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 6 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Wright Medical Group NV (NASDAQ:TRNX) but similarly valued. We will take a look at Enerplus Corp (USA) (NYSE:ERF), Abaxis Inc (NASDAQ:ABAX), Lumentum Holdings Inc (NASDAQ:LITE), and Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM). All of these stocks’ market caps match TRNX’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $60 million, as compared to $61 million in TRNX’s case. Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) is the most popular stock in this table. On the other hand Lumentum Holdings Inc (NASDAQ:LITE) is the least popular one with only 10 bullish hedge fund positions. Wright Medical Group NV (NASDAQ:TRNX) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TSEM might be a better candidate to consider a long position.