Do Hedge Funds Love Keryx Biopharmaceuticals Inc (KERX)?

Since Keryx Biopharmaceuticals Inc (NASDAQ:KERX) has faced a bearish sentiment from hedge fund managers, we can see that there exists a select few hedge funds that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group cashed in the biggest position of all the investors monitored by Insider Monkey, worth about $1.1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.7 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Keryx Biopharmaceuticals Inc (NASDAQ:KERX). These stocks are Aceto Corporation (NASDAQ:ACET), FTD Companies Inc (NASDAQ:FTD), Sodastream International Ltd (NASDAQ:SODA), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). This group of stocks’ market values are closest to KERX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ACET 11 59959 3
FTD 14 50990 2
SODA 16 66834 3
SCHN 14 91577 -1

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $67 million. That figure was $174 million in KERX’s case. Sodastream International Ltd (NASDAQ:SODA) is the most popular stock in this table. On the other hand Aceto Corporation (NASDAQ:ACET) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Keryx Biopharmaceuticals Inc (NASDAQ:KERX) is even less popular than ACET. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None