Hedge Funds Are Dumping Regeneron Pharmaceuticals Inc (REGN)

Due to the fact that Regeneron Pharmaceuticals Inc (NASDAQ:REGN) has witnessed a decline in interest from hedge fund managers, it’s safe to say that there was a specific group of money managers that elected to cut their positions entirely in the third quarter. Intriguingly, Ken Griffin’s Citadel Investment Group said goodbye to the largest position of the “upper crust” of funds followed by Insider Monkey, totaling about $76.1 million in call options. Jim Simons’s fund, Renaissance Technologies, also cut its stock, about $73.6 million worth of REGN shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Regeneron Pharmaceuticals Inc (NASDAQ:REGN) but similarly valued. We will take a look at Bank of Montreal (USA) (NYSE:BMO), Netflix, Inc. (NASDAQ:NFLX), Phillips 66 (NYSE:PSX), and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA). All of these stocks’ market caps resemble REGN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BMO 16 219051 1
NFLX 55 3711921 1
PSX 29 7315837 3
TEVA 54 4254824 -1

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $3.88 billion. That figure was a meager $630 million in REGN’s case. Netflix, Inc. (NASDAQ:NFLX) is the most popular stock in this table. On the other hand Bank of Montreal (USA) (NYSE:BMO) is the least popular one with only 16 bullish hedge fund positions. Regeneron Pharmaceuticals Inc (NASDAQ:REGN) 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 NFLX might be a better candidate to consider taking a long position in.

Disclosure: none.