Hedge Funds Aren’t Crazy About Cidara Therapeutics Inc (CDTX) Anymore

Since Cidara Therapeutics Inc (NASDAQ:CDTX) has sustained falling interest from the smart money, it’s easy to see that there was a specific group of hedgies that elected to cut their full holdings by the end of the third quarter. Intriguingly, Peter Kolchinsky’s RA Capital Management said goodbye to the biggest stake of the 700 funds tracked by Insider Monkey, comprising about $4.2 million in stock, and James A. Silverman’s Opaleye Management was right behind this move, as the fund sold off about $0.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Cidara Therapeutics Inc (NASDAQ:CDTX). We will take a look at Enzymotec Ltd (NASDAQ:ENZY), GigOptix Inc (NYSEAMEX:GIG), CAI International Inc (NYSE:CAI), and A. H. Belo Corporation (NYSE:AHC). This group of stocks’ market valuations are closest to CDTX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ENZY 6 38488 0
GIG 6 11602 -5
CAI 5 12967 -4
AHC 4 5115 1

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $43 million in CDTX’s case. Enzymotec Ltd (NASDAQ:ENZY) is the most popular stock in this table. On the other hand A. H. Belo Corporation (NYSE:AHC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Cidara Therapeutics Inc (NASDAQ:CDTX) 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.

Disclosure: None