Hedge Funds Are Buying Taro Pharmaceutical Industries Ltd. (TARO)

As one would reasonably expect, key hedge funds were breaking ground themselves. Kerrisdale Capital, managed by Sahm Adrangi, initiated the biggest position in Taro Pharmaceutical Industries Ltd. (NYSE:TARO). Kerrisdale Capital had $11 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also made a $1.6 million investment in the stock during the quarter. The other funds with brand new TARO positions are Michael Platt and William Reeves’s BlueCrest Capital Mgmt., John Overdeck and David Siegel’s Two Sigma Advisors, and Noam Gottesman’s GLG Partners.

Let’s now review hedge fund activity in other stocks similar to Taro Pharmaceutical Industries Ltd. (NYSE:TARO). These stocks are Alexandria Real Estate Equities Inc (NYSE:ARE), WABCO Holdings Inc. (NYSE:WBC), EQT GP Holdings LP (NYSE:EQGP), and American Financial Group (NYSE:AFG). All of these stocks’ market caps match TARO’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $312 million in TARO’s case. WABCO Holdings Inc. (NYSE:WBC) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 5 bullish hedge fund positions. Taro Pharmaceutical Industries Ltd. (NYSE:TARO) 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 WBC might be a better candidate to consider a long position.