Why Novavax, Inc. (NVAX)’s Shares Are Trading in Green on Wednesday?

Deerfield Management, managed by James E. Flynn, established the most valuable position in Novavax, Inc. (NASDAQ:NVAX). Deerfield Management had $12.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $5.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Randall Smith’s Alden Global Capital, Nathan Fischel’s DAFNA Capital Management, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Novavax, Inc. (NASDAQ:NVAX) but similarly valued. These stocks are Noah Holdings Limited (ADR) (NYSE:NOAH), Old National Bancorp (NYSE:ONB), Stag Industrial Inc (NYSE:STAG), and Advanced Energy Industries, Inc. (NASDAQ:AEIS). All of these stocks’ market caps are similar to NVAX’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 $62 million. That figure was $60 million in NVAX’s case. Advanced Energy Industries, Inc. (NASDAQ:AEIS) is the most popular stock in this table. On the other hand Noah Holdings Limited (ADR) (NYSE:NOAH) is the least popular one with only 5 bullish hedge fund positions. Novavax, Inc. (NASDAQ:NVAX) 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 AEIS might be a better candidate to consider a long position.

Disclosure: None