Because Enzo Biochem, Inc. (NYSE:ENZ) has faced a decline in interest from hedge fund managers, logic holds that there is a sect of funds that slashed their positions entirely by the end of the third quarter. At the top of the heap, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners cut the biggest stake of the 700 funds watched by Insider Monkey, totaling about $0.1 million in stock, and Cliff Asness’ AQR Capital Management was right behind this move, as the fund dropped about $0.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks similar to Enzo Biochem, Inc. (NYSE:ENZ). We will take a look at Information Services Group, Inc. (NASDAQ:III), Rosetta Stone Inc (NYSE:RST), Owens Realty Mortgage Inc (NYSEMKT:ORM), and Rightside Group Ltd (NASDAQ:NAME). This group of stocks’ market values are closest to ENZ’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $29 million. That figure was $7 million in ENZ’s case. Rosetta Stone Inc (NYSE:RST) is the most popular stock in this table. On the other hand, Owens Realty Mortgage Inc (NYSEMKT:ORM) is the least popular one with only 4 bullish hedge fund positions. Enzo Biochem, Inc. (NYSE:ENZ) 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 RST might be a better candidate to consider a long position.