We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Citadel Investment Group. 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 here because none of the 700+ hedge funds tracked by Insider Monkey identified Carbylan Therapeutics Inc (NASDAQ:CBYL) as a viable investment and initiated a position in the stock.
Let’s also examine hedge fund activity in other stocks similar to Carbylan Therapeutics Inc (NASDAQ:CBYL). These stocks are BIND Therapeutics Inc (NASDAQ:BIND), Intermolecular Inc (NASDAQ:IMI), Gastar Exploration Inc (NYSEMKT:GST), and STG Group Inc (OTCMKTS:GDEF). This group of stocks’ market caps are similar to Carbylan Therapeutics Inc (NASDAQ:CBYL)’s market cap.
|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 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $6 million in Carbylan Therapeutics Inc (NASDAQ:CBYL)’s case. Intermolecular Inc (NASDAQ:IMI) is the most popular stock in this table. On the other hand, BIND Therapeutics Inc (NASDAQ:BIND) is the least popular one with only 4 bullish hedge fund positions. Carbylan Therapeutics Inc (NASDAQ: CBYL) 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, Intermolecular Inc (NASDAQ:IMI) might be a better candidate to consider a long position.