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Hedge Funds Are Crazy About Zogenix, Inc. (ZGNX)

Consequently, specific money managers have jumped into Zogenix, Inc. (NASDAQ:ZGNX) headfirst. RA Capital Management, managed by Peter Kolchinsky, established the most outsized position in Zogenix, Inc. (NASDAQ:ZGNX). RA Capital Management had $22.7 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also initiated a $5 million position during the quarter. The other funds with new positions in the stock are Eric Bannasch’s Cadian Capital, Vishal Bhutani and Joshua Bederman’s Pyrrho Capital Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Zogenix, Inc. (NASDAQ:ZGNX) but similarly valued. We will take a look at Comtech Telecomm. Corp. (NASDAQ:CMTL), Cardionet Inc (NASDAQ:BEAT), First Community Bancshares Inc (NASDAQ:FCBC), and Aegean Marine Petroleum Network Inc. (NYSE:ANW). All of these stocks’ market caps are similar to ZGNX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMTL 11 56686 0
BEAT 23 71626 3
FCBC 6 6807 -1
ANW 14 85797 -5

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $55 million, which is lower than the $158 million in ZGNX’s case. Cardionet Inc (NASDAQ:BEAT) is the most popular stock in this table with 23 funds reporting long stakes. On the other hand First Community Bancshares Inc (NASDAQ:FCBC) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Zogenix, Inc. (NASDAQ:ZGNX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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