Hedge Funds Aren’t Crazy About SciClone Pharmaceuticals, Inc. (SCLN) Anymore

Because SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) has experienced bearish sentiment from hedge fund managers, we can see that there was a specific group of hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the largest stake of the 700 funds followed by Insider Monkey, valued at an estimated $1.5 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund said goodbye to about $0.8 million worth of SCLN shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 6 funds last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) but similarly valued. These stocks are PennyMac Financial Services Inc (NYSE:PFSI), Elizabeth Arden, Inc. (NASDAQ:RDEN), Bridgepoint Education Inc (NYSE:BPI), and LinnCo LLC (NASDAQ:LNCO). All of these stocks’ market caps are similar to SCLN’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was a poor $21 million in SCLN’s case. PennyMac Financial Services Inc (NYSE:PFSI) is the most popular stock in this table. On the other hand Elizabeth Arden, Inc. (NASDAQ:RDEN) is the least popular one with only 8 bullish hedge fund positions. SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) is not the most popular stock in this group, but hedge fund interest is still above average. While this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PFSI might be a better candidate to consider a long position.