Do Hedge Funds Love Applied Genetic Technologies Corp (AGTC)?

Seeing as Applied Genetic Technologies Corp (NASDAQ:AGTC) has experienced a drop in interest from hedge fund managers, we can see that there lies a certain “tier” of fund managers that slashed their entire stakes last quarter. At the top of the heap, Paul Tudor Jones’s Tudor Investment Corp cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $0.2 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also said goodbye to its stock, about $0 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 1 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Applied Genetic Technologies Corp (NASDAQ:AGTC). These stocks are Cascade Microtech, Inc. (NASDAQ:CSCD), Franklin Financial Network Inc (NYSE:FSB), DURECT Corporation (NASDAQ:DRRX), and Bluerock Residential Growth REIT Inc (NYSEMKT:BRG). All of these stocks’ market caps are similar to AGTC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CSCD 5 24994 -2
FSB 4 15973 -2
DRRX 11 56578 1
BRG 12 22940 -1

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $30 million, versus $43 million in AGTC’s case. Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) is the most popular stock in this table, while Franklin Financial Network Inc (NYSE:FSB) is the least popular one with only 4 bullish hedge fund positions. Applied Genetic Technologies Corp (NASDAQ:AGTC) 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 BRG might be a better candidate to consider a long position.