Hedge Funds Are Selling ABIOMED, Inc. (ABMD) But Worry Not, Sentiment Remains Strong

Judging by the fact that ABIOMED, Inc. (NASDAQ:ABMD) has faced a decline in interest from the smart money, it’s easy to see that there was a specific group of money managers that decided to sell off their entire stakes in the third quarter. Intriguingly, Paul Sinclair’s Blue Jay Capital Management sold off the largest position of the 700 funds followed by Insider Monkey, totaling about $11.5 million in stock. Benjamin A. Smith’s fund, Laurion Capital Management, also dropped its stock, about $9.7 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest dropped by 5 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to ABIOMED, Inc. (NASDAQ:ABMD). We will take a look at Williams-Sonoma, Inc. (NYSE:WSM), Tahoe Resources Inc (NYSE:TAHO), Tesoro Logistics LP (NYSE:TLLP), and Manhattan Associates, Inc. (NASDAQ:MANH). This group of stocks’ market valuations match ABMD’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $198 million. That figure was $581 million in ABMD’s case. Tahoe Resources Inc (NYSE:TAHO) is the most popular stock in this table. On the other hand Tesoro Logistics LP (NYSE:TLLP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks ABIOMED, Inc. (NASDAQ:ABMD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers despite the Q3 drop in ownership, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None