Because Foundation Medicine Inc (NASDAQ:FMI) has a faced bearish sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of money managers that decided to sell off their full holdings by the end of the third quarter. Interestingly, Peter Muller’s PDT Partners sold off the largest stake of all the hedgies tracked by Insider Monkey, worth about $0.7 million in stock. Mark Wolfson and Jamie Alexander’s fund, Jasper Ridge Partners, also said goodbye to its stock, about $0.2 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Foundation Medicine Inc (NASDAQ:FMI) but similarly valued. These stocks are Quidel Corporation (NASDAQ:QDEL), Raven Industries, Inc. (NASDAQ:RAVN), Chegg Inc (NYSE:CHGG), and Diamond Hill Investment Group, Inc. (NASDAQ:DHIL). This group of stocks’ market values matches Foundation Medicine Inc (NASDAQ:FMI)’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 10 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $47 million in Foundation Medicine Inc (NASDAQ:FMI)’s case. Quidel Corporation (NASDAQ:QDEL) is the most popular stock in this table. On the other hand, Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) is the least popular one with only 5 bullish hedge fund positions. Foundation Medicine Inc (NASDAQ:FMI) 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, Quidel Corporation (NASDAQ:QDEL) might be a better candidate to consider a long position.