Do Hedge Funds Love Solazyme Inc (SZYM)?

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Moreover, there lies a certain “tier” of money managers that elected to cut their full holdings by the end of the third quarter. Interestingly, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co said goodbye to the largest position of all the hedgies followed by Insider Monkey, valued at close to $0.9 million in stock, and William Harnisch’s Peconic Partners LLC was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Solazyme Inc (NASDAQ:SZYM). We will take a look at Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN), EXCO Resources Inc (NYSE:XCO), LSI Industries, Inc. (NASDAQ:LYTS), and Sequenom, Inc. (NASDAQ:SQNM). This group of stocks’ market values are closest to SZYM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
XIN 4 5996 0
XCO 12 92588 -3
LYTS 10 28214 3
SQNM 11 47936 -2

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $44 million, versus $16 million in SZYM’s case. EXCO Resources Inc (NYSE:XCO) is the most popular stock in this table. On the other hand Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN) is the least popular one with only 4 bullish hedge fund positions. Solazyme Inc (NASDAQ:SZYM) 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 XCO might be a better candidate to consider a long position.

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