We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Ardsley Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Jim Simons’ Renaissance Technologies).
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Bioamber Inc (NYSE:BIOA) but similarly valued. These stocks are CUI Global Inc (NASDAQ:CUI), Aware, Inc. (NASDAQ:AWRE), Mesabi Trust (NYSE:MSB), and Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE). All of these stocks’ market caps are closest to BIOA’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 3 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $6 million in BIOA’s case. Aware, Inc. (NASDAQ:AWRE) is the most popular stock in this table. On the other hand CUI Global Inc (NASDAQ:CUI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Bioamber Inc (NYSE:BIOA) 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.