Cidara Therapeutics Inc (CDTX): Are Hedge Funds Right About This Stock?

Page 2 of 2

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Cidara Therapeutics Inc (NASDAQ:CDTX) headfirst. Aisling Capital, managed by Dennis Purcell, created the largest position in Cidara Therapeutics Inc (NASDAQ:CDTX). Aisling Capital had $13 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Cidara Therapeutics Inc (NASDAQ:CDTX). We will take a look at Inventure Foods Inc (NASDAQ:SNAK), EMCORE Corporation (NASDAQ:EMKR), ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS), and Monroe Capital Corp (NASDAQ:MRCC). All of these stocks’ market caps resemble CDTX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SNAK 6 11759 -4
EMKR 16 32005 4
BIS 4 30595 -1
MRCC 4 1847 3

As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $53 million in CDTX’s case. EMCORE Corporation (NASDAQ:EMKR) is the most popular stock in this table. On the other hand ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS) is the least popular one with only 4 bullish hedge fund positions. Cidara Therapeutics Inc (NASDAQ:CDTX) 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 EMKR might be a better candidate to consider a long position.

Page 2 of 2