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Hedge Funds Are Selling SAGE Therapeutics Inc (SAGE)

Due to the fact that SAGE Therapeutics Inc (NASDAQ:SAGE) has faced falling interest from hedge fund managers, logic holds that there were a few hedgies who sold off their full holdings heading into Q4. Interestingly, Richard Driehaus’s Driehaus Capital dropped the biggest stake of all the hedgies followed by Insider Monkey, worth about $5.8 million in stock. Mark Wolfson and Jamie Alexander’s fund, Jasper Ridge Partners, also sold off its stock, about $2.6 million worth of SAGE shares. These transactions are important to note, as aggregate hedge fund interest was cut by 4 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as SAGE Therapeutics Inc (NASDAQ:SAGE) but similarly valued. We will take a look at Itron, Inc. (NASDAQ:ITRI), ExlService Holdings, Inc. (NASDAQ:EXLS), Oasis Petroleum Inc. (NYSE:OAS), and Marketo Inc (NASDAQ:MKTO). This group of stocks’ market valuations resemble SAGE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ITRI 16 200409 0
EXLS 13 76313 -2
OAS 26 416930 -2
MKTO 15 97152 -2

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $198 million. That figure was $744 million in SAGE’s case. Oasis Petroleum Inc. (NYSE:OAS) is the most popular stock in this table. On the other hand ExlService Holdings, Inc. (NASDAQ:EXLS) is the least popular one with only 13 bullish hedge fund positions. SAGE Therapeutics Inc (NASDAQ:SAGE) 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 OAS might be a better candidate to consider a long position.

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