Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Can Sangamo Biosciences, Inc. (SGMO) Win the Battle Against its Market Cap Peers?

Judging by the fact that Sangamo Biosciences, Inc. (NASDAQ:SGMO) has witnessed bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds who were dropping their positions entirely by the end of the third quarter. Interestingly, RA Capital Management said goodbye to the biggest investment of the “upper crust” of funds tracked by Insider Monkey, totaling about $66.5 million in stock, and Joseph Edelman’s Perceptive Advisors was right behind this move, as the fund dropped about $8.9 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest was cut by 3 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Sangamo Biosciences, Inc. (NASDAQ:SGMO). We will take a look at Donegal Group Inc (NASDAQ:DGICA), Cascade Bancorp (NASDAQ:CACB), FormFactor, Inc. (NASDAQ:FORM), and Rudolph Technologies Inc (NYSE:RTEC). This group of stocks’ market values resemble SGMO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DGICA 6 5583 1
CACB 6 83032 -1
FORM 18 34224 1
RTEC 19 46402 8

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $66 million in SGMO’s case. Rudolph Technologies Inc (NYSE:RTEC) is the most popular stock in this table. On the other hand Donegal Group Inc (NASDAQ:DGICA) is the least popular one with only 6 bullish hedge fund positions. Sangamo Biosciences, Inc. (NASDAQ:SGMO) is tied with RTEC as the most popular stock in this group and has more money invested in it. This is a positive signal, and both RTEC and SGMO might be good candidates to consider long positions in.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.