We view hedge fund activity in the stock unfavorable, but, in this case, there was only a single hedge fund selling its entire position: Broadfin Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified BLRX as a viable investment and initiated a position in the stock.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Bioline RX Ltd (NASDAQ:BLRX) but similarly valued. We will take a look at Intec Pharma Ltd (NASDAQ:NTEC), Harvest Natural Resources, Inc. (NYSE:HNR), TheStreet, Inc. (NASDAQ:TST), and GigOptix Inc (NYSEMKT:GIG). This group of stocks’ market values resemble BLRX’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $10 million in BLRX’s case. Harvest Natural Resources, Inc. (NYSE:HNR) is the most popular stock in this table. On the other hand, Intec Pharma Ltd (NASDAQ:NTEC) is the least popular one with only 5 bullish hedge fund positions. Bioline RX Ltd (NASDAQ:BLRX) is not the least popular stock in this group, but hedge fund interest is still not impressive enough to spend our time analyzing it. Based on our extensive studies, we consider that the best approach is to focus on analyzing stocks that hedge funds are collectively the fondest of and, in this case, HNR might be a better candidate to consider a long position.