Chimerix Inc (CMRX): Are Hedge Funds Right About This Stock?

Judging by the fact that Chimerix Inc (NASDAQ:CMRX) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds that slashed their full holdings last quarter. Interestingly, Benjamin A. Smith’s Laurion Capital Management said goodbye to the largest investment of all the hedgies followed by Insider Monkey, comprising close to $4.2 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $4.2 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 4 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Chimerix Inc (NASDAQ:CMRX) but similarly valued. These stocks are Tahoe Resources Inc (NYSE:TAHO), The St. Joe Company (NYSE:JOE), Ferrellgas Partners, L.P. (NYSE:FGP), and Mellanox Technologies, Ltd. (NASDAQ:MLNX). This group of stocks’ market values resemble CMRX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TAHO 13 55155 0
JOE 9 516261 -1
FGP 4 8639 0
MLNX 33 411147 -1

As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $248 million. That figure was $207 million in CMRX’s case. Mellanox Technologies, Ltd. (NASDAQ:MLNX) is the most popular stock in this table. On the other hand Ferrellgas Partners, L.P. (NYSE:FGP) is the least popular one with only 4 bullish hedge fund positions. Chimerix Inc (NASDAQ:CMRX) 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 MLNX might be a better candidate to consider a long position.