CytRx Corporation (CYTR): Hedge Funds Are Snapping Up

As industrywide interest jumped, some big names were breaking ground themselves. Opaleye Management initiated the biggest position in CytRx Corporation (NASDAQ:CYTR). Hal Mintz’s Sabby Capital also made a $0.4 million investment in the stock during the quarter. The only other fund with a new position in the stock is Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks similar to CytRx Corporation (NASDAQ:CYTR). These stocks are Skullcandy Inc (NASDAQ:SKUL), GulfMark Offshore, Inc. (NYSE:GLF), ROI Acquisition Corp (NASDAQ:ROIQ), and Salem Communications Corp (NASDAQ:SALM). This group of stocks’ market values are similar to CYTR’s market value.

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 $24 million. That figure was $22 million in CYTR’s case. Skullcandy Inc (NASDAQ:SKUL) is the most popular stock in this table, while Salem Communications Corp (NASDAQ:SALM) is the least popular one with only 6 bullish hedge fund positions. CytRx Corporation (NASDAQ:CYTR) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SKUL might be a better candidate to consider a long position.