Hedge Funds Are Betting On Egalet Corp (EGLT)

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As industrywide interest jumped, specific money managers were breaking ground themselves. Deerfield Management assembled the most valuable position in Egalet Corp (NASDAQ:EGLT). venBio Select Advisor also made a $5.8 million investment in the stock during the quarter. The other funds with brand new EGLT positions are Rock Springs Capital Management, D E Shaw, and Anand Parekh’s Alyeska Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Egalet Corp (NASDAQ:EGLT) but similarly valued. We will take a look at Peapack-Gladstone Financial Corp (NASDAQ:PGC), Covenant Transportation Group, Inc. (NASDAQ:CVTI), Petmed Express Inc (NASDAQ:PETS), and RTI Surgical Inc. (NASDAQ:RTIX). This group of stocks’ market caps resemble EGLT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PGC 6 44635 -1
CVTI 19 31647 7
PETS 9 41787 -1
RTIX 16 44325 0

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $33 million in EGLT’s case. Covenant Transportation Group, Inc. (NASDAQ:CVTI) is the most popular stock in this table. On the other hand Peapack-Gladstone Financial Corp (NASDAQ:PGC) is the least popular one with only 6 bullish hedge fund positions. Egalet Corp (NASDAQ:EGLT) 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 CVTI might be a better candidate to consider a long position.

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