Due to the fact that Catabasis Pharmaceuticals Inc (NASDAQ:CATB) has witnessed bearish sentiment from the smart money, we can see that there is a sect of funds who were dropping their positions entirely last quarter. It’s worth mentioning that Biotechnology Value Fund / BVF Inc cut the largest investment of the “upper crust” of funds watched by Insider Monkey, totaling about $2.7 million in stock. Marc Majzner’s fund, Clearline Capital, also cut its stock, about $0.6 million worth. These transactions are interesting, as total hedge fund interest fell by 1 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Catabasis Pharmaceuticals Inc (NASDAQ:CATB) but similarly valued. These stocks are Shore Bancshares, Inc. (NASDAQ:SHBI), Farmland Partners Inc (NYSE:FPI), Travelzoo Inc. (NASDAQ:TZOO), and Fortress Biotech Inc (NASDAQ:FBIO). All of these stocks’ market caps match CATB’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 7 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $14 million in CATB’s case. Travelzoo Inc. (NASDAQ:TZOO) is the most popular stock in this table. On the other hand Farmland Partners Inc (NYSE:FPI) is the least popular one with only 4 bullish hedge fund positions. Catabasis Pharmaceuticals Inc (NASDAQ:CATB) 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 TZOO might be a better candidate to consider a long position.