Do Hedge Funds Love Hutchinson Technology Incorporated (HTCH)?

Due to the fact that Hutchinson Technology Incorporated (NASDAQ:HTCH) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of fund managers that slashed their positions entirely in the third quarter. Interestingly, Jeffrey Moskowitz’s Harvey Partners dropped the biggest investment of the 700 funds watched by Insider Monkey, worth an estimated $1.1 million in stock, and Cliff Asness’s AQR Capital Management was right behind this move, as the fund dropped about $0.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Hutchinson Technology Incorporated (NASDAQ:HTCH) but similarly valued. We will take a look at iCAD Inc (NASDAQ:ICAD), Galectin Therapeutics Inc. (NASDAQ:GALT), Catalyst Biosciences Inc (NASDAQ:CBIO), and Bovie Medical Corporation (NYSEMKT:BVX). This group of stocks’ market caps match HTCH’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was $4 million in HTCH’s case. Catalyst Biosciences Inc (NASDAQ:CBIO) is the most popular stock in this table. On the other hand iCAD Inc (NASDAQ:ICAD) is the least popular one with only 4 bullish hedge fund positions. Hutchinson Technology Incorporated (NASDAQ:HTCH) 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 CBIO might be a better candidate to consider a long position.