Hedge Funds Are Buying Novocure Ltd (NVCR)

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As one would reasonably expect, key money managers were leading the bulls’ herd. Tamarack Capital Management, led by Justin John Ferayorni, assembled the largest position in Novocure Ltd (NASDAQ:NVCR). The fund reportedly had $6.6 million invested in the company at the end of the quarter. Richard C. Patton’s Courage Capital also made a $4.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s check out hedge fund activity in other stocks similar to Novocure Ltd (NASDAQ:NVCR). These stocks are Kelly Services, Inc. (NASDAQ:KELYA), TerraForm Global Inc (NASDAQ:GLBL), Sandy Spring Bancorp Inc. (NASDAQ:SASR), and ORBCOMM Inc (NASDAQ:ORBC). This group of stocks’ market valuations are closest to NVCR’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KELYA 10 37124 1
GLBL 15 124310 -1
SASR 8 19400 2
ORBC 18 133227 2

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 $79 million. That figure was $45 million in NVCR’s case. ORBCOMM Inc (NASDAQ:ORBC) is the most popular stock in this table. On the other hand Sandy Spring Bancorp Inc. (NASDAQ:SASR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Novocure Ltd (NASDAQ:NVCR) is even less popular than SASR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None


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