Hedge Funds Are Buying Veracyte Inc (VCYT)

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With a general bullishness amongst the heavyweights, specific money managers have jumped into Veracyte Inc (NASDAQ:VCYT) headfirst. Driehaus Capital, managed by Richard Driehaus, initiated the largest position in Veracyte Inc (NASDAQ:VCYT). Driehaus Capital had $1.1 million invested in the company at the end of the quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Veracyte Inc (NASDAQ:VCYT) but similarly valued. We will take a look at Cadiz Inc (NASDAQ:CDZI), Layne Christensen Company (NASDAQ:LAYN), BioScrip Inc. (NASDAQ:BIOS), and Harvard Bioscience, Inc. (NASDAQ:HBIO). This group of stocks’ market caps are similar to VCYT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CDZI 6 20233 0
LAYN 9 46127 -7
BIOS 14 38623 -1
HBIO 7 7536 1

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $26 million in VCYT’s case. BioScrip Inc. (NASDAQ:BIOS) is the most popular stock in this table with a total of 14 funds reporting stakes in the company. On the other hand Cadiz Inc (NASDAQ:CDZI) is the least popular one with only 6 bullish hedge fund positions. Veracyte Inc (NASDAQ:VCYT) 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 BIOS might be a better candidate to consider a long position.

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