Discovery Laboratories, Inc. (DSCO): Are Hedge Funds Right About This Stock?

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As aggregate interest increased, key hedge funds have been driving this bullishness. Sabby Capital initiated the biggest position in Discovery Laboratories, Inc. (NASDAQ:DSCO). Sabby Capital had $1.4 million invested in the company at the end of the quarter. Jeffrey Jay and David Kroin’s Great Point Partners also initiated a $0.8 million position during the quarter. The only other fund with a brand new Discovery Laboratories, Inc. (NASDAQ:DSCO) position is Anand Parekh’s Alyeska Investment Group.

Let’s go over hedge fund activity in other stocks similar to Discovery Laboratories, Inc. (NASDAQ:DSCO). These stocks are Alphatec Holdings Inc (NASDAQ:ATEC), Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE), On Track Innovations Ltd.(USA) (NASDAQ:OTIV), and Cogentix Medical Inc (NASDAQ:CGNT). This group of stocks’ market values resemble Discovery Laboratories, Inc. (NASDAQ:DSCO)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ATEC 4 3747 -2
DDE 4 862 0
OTIV 4 2450 1
CGNT 8 6588 0

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $13 million in Discovery Laboratories, Inc. (NASDAQ:DSCO)’s case. Cogentix Medical Inc (NASDAQ:CGNT) is the most popular stock in this table. On the other hand, Alphatec Holdings Inc (NASDAQ:ATEC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Discovery Laboratories, Inc. (NASDAQ:DSCO) 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.

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