Hedge Funds Are Betting On ContraFect Corp (CFRX)

As one would reasonably expect, key money managers have jumped into ContraFect Corp (NASDAQ:CFRX) headfirst. Adage Capital Management created the biggest position in ContraFect Corp (NASDAQ:CFRX). Adage Capital Management had $0.2 million invested in the company at the end of the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ContraFect Corp (NASDAQ:CFRX) but similarly valued. We will take a look at Advent/Claymore Enhanced Growth & Income (NYSE:LCM), Ellington Residential Mortgage REIT (NYSE:EARN), Protalix BioTherapeutics Inc. (NYSEMKT:PLX), and Recro Pharma Inc (NASDAQ:REPH). This group of stocks’ market values match ContraFect Corp (NASDAQ:CFRX)’s market value.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $10 million in ContraFect Corp (NASDAQ:CFRX)’s case. Recro Pharma Inc (NASDAQ:REPH) is the most popular stock in this table. On the other hand, Ellington Residential Mortgage REIT (NYSE:EARN) is the least popular one with only 4 bullish hedge fund positions. ContraFect Corp (NASDAQ:CFRX) 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, Recro Pharma Inc (NASDAQ:REPH) might be a better candidate to consider a long position.