Do Hedge Funds Love Omeros Corporation (OMER)?

Because Omeros Corporation (NASDAQ:OMER) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds who sold off their positions entirely last quarter. Intriguingly, Peter Kolchinsky’s RA Capital Management dumped the largest stake of the “upper crust” of funds monitored by Insider Monkey, worth close to $13.5 million in call options., and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund dumped about $0.5 million worth of shares. These transactions are important to note, as total hedge fund interest dropped by 2 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Omeros Corporation (NASDAQ:OMER). These stocks are First Financial Corp (NASDAQ:THFF), FairPoint Communications Inc (NASDAQ:FRP), Koppers Holdings Inc. (NYSE:KOP), and El Pollo LoCo Holdings Inc (NASDAQ:LOCO). All of these stocks’ market caps are similar to OMER’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
THFF 7 11841 3
FRP 21 186386 3
KOP 19 60200 3
LOCO 9 14469 2

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 $68 million, up from $54 million in OMER’s case. FairPoint Communications Inc (NASDAQ:FRP) is the most popular stock in this table. On the other hand First Financial Corp (NASDAQ:THFF) is the least popular one with only 7 bullish hedge fund positions. Omeros Corporation (NASDAQ:OMER) 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 FRP might be a better candidate to consider a long position.