Hedge Funds Are Selling Tetraphase Pharmaceuticals Inc (TTPH)

Judging by the fact that Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) has experienced a bearish sentiment from the smart money, it’s safe to say that there exists a select few fund managers who were dropping their full holdings last quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management dumped the biggest position of the 700 funds watched by Insider Monkey, totaling about $29.7 million in stock. Brian Ashford-Russell and Tim Woolley’s fund, Polar Capital, also dropped its stock, about $22.9 million worth. These moves are interesting, as total hedge fund interest dropped by 6 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) but similarly valued. We will take a look at The York Water Company (NASDAQ:YORW), Akarti Therapeutics PLC (ADR) (NASDAQ:AKTX), Trinity Biotech plc (ADR) (NASDAQ:TRIB), and American Software, Inc. (NASDAQ:AMSWA). All of these stocks’ market caps match TTPH’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $27 million in TTPH’s case. Trinity Biotech plc (ADR) (NASDAQ:TRIB) is the most popular stock in this table. On the other hand The York Water Company (NASDAQ:YORW) is the least popular one with only 5 bullish hedge fund positions. Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TRIB might be a better candidate to consider a long position.