Hedge Funds Are Selling Sagent Pharmaceuticals Inc (SGNT)

Since Sagent Pharmaceuticals Inc (NASDAQ:SGNT) has witnessed declining sentiment from the smart money, it’s safe to say that there exists a select few hedge funds that slashed their entire stakes heading into Q4. It’s worth mentioning that Soros Fund Management dumped the biggest investment of all the hedgies followed by Insider Monkey, valued at about $8.4 million in stock. Jeffrey Jay and David Kroin’s fund, Great Point Partners, also dumped its stock, about $3.5 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 8 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Sagent Pharmaceuticals Inc (NASDAQ:SGNT). These stocks are The Spectranetics Corporation (NASDAQ:SPNC), Kansas City Life Insurance Co (NASDAQ:KCLI), and AAC Holdings Inc (NYSE:AAC). All of these stocks’ market caps are similar to Sagent Pharmaceuticals Inc (NASDAQ:SGNT)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPNC 24 148646 2
KCLI 4 4813 3
AAC 14 78856 2

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $63 million in Sagent Pharmaceuticals Inc (NASDAQ:SGNT)’s case. The Spectranetics Corporation (NASDAQ:SPNC) is the most popular stock in this table. On the other hand, Kansas City Life Insurance Co (NASDAQ:KCLI) is the least popular one with only 4 bullish hedge fund positions. Sagent Pharmaceuticals Inc (NASDAQ:SGNT) 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, the Spectranetics Corporation (NASDAQ:SPNC) might be a better candidate to consider a long position.