Hedge Funds Are Fleeing The Sinking T2 Biosystems Inc (TTOO)

Judging by the fact that T2 Biosystems Inc (NASDAQ:TTOO) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds who sold off their full holdings last quarter. It’s worth mentioning that Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the biggest stake of all the hedgies tracked by Insider Monkey, valued at an estimated $4.5 million in stock, and Peter Kolchinsky’s RA Capital Management was right behind this move, as the fund said goodbye to about $2.2 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 3 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as T2 Biosystems Inc (NASDAQ:TTOO) but similarly valued. We will take a look at Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT), Gafisa SA (ADR) (NYSE:GFA), Sizmek Inc (NASDAQ:SZMK), and Autobytel Inc. (NASDAQ:ABTL). All of these stocks’ market caps are similar to TTOO’s market cap.

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 $14 million. That figure was $35 million in TTOO’s case. Autobytel Inc. (NASDAQ:ABTL) is the most popular stock in this table. On the other hand Gafisa SA (ADR) (NYSE:GFA) is the least popular one with only 6 bullish hedge fund positions. T2 Biosystems Inc (NASDAQ:TTOO) is not the least popular stock in this group but hedge fund interest is still below average and falling. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ABTL might be a better candidate to consider for a long position.