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Hedge Funds Are Selling Sequenom, Inc. (SQNM)

Since Sequenom, Inc. (NASDAQ:SQNM) has experienced a decline in interest from the smart money, it’s easy to see that there was a specific group of fund managers who sold off their entire stakes last quarter. At the top of the heap, Howard Marks’ Oaktree Capital Management dropped the largest position of all the hedgies tracked by Insider Monkey, comprising about $3.9 million in stock, and Renaissance Technologies was right behind this move, as the fund dumped about $1.2 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Sequenom, Inc. (NASDAQ:SQNM) but similarly valued. These stocks are Charter Financial Corp (NASDAQ:CHFN), Hennessy Capital Acquisition Corp (NASDAQ:BLBD), Tribune Publishing Co (NYSE:TPUB), and Peregrine Pharmaceuticals (NASDAQ:PPHM). All of these stocks’ market caps match Sequenom, Inc. (NASDAQ:SQNM)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHFN 9 31061 0
BLBD 7 54339 -4
TPUB 10 40763 -4
PPHM 7 2040 0

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $48 million in Sequenom, Inc. (NASDAQ:SQNM)’s case. Tribune Publishing Co (NYSE:TPUB) is the most popular stock in this table, in terms of the number of hedge fund holdings, whereas Hennessy Capital Acquisition Corp (NASDAQ:BLBD) is the least popular one, with only 7 bullish hedge fund positions. Compared to these stocks, Sequenom, Inc. (NASDAQ:SQNM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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