Here is What Hedge Funds Think About NanoViricides Inc (NNVC)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: LMR Partners. 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 in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Citadel Investment Group).

Let’s check out hedge fund activity in other stocks similar to NanoViricides Inc (NYSEMKT:NNVC). These stocks are TearLab Corporation (NASDAQ:TEAR), Datawatch Corporation (NASDAQ:DWCH), AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), and CEL-SCI Corporation (NYSEMKT:CVM). All of these stocks’ market caps are similar to NNVC’s market cap.

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 $5 million. AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) is the most popular stock in this table. On the other hand TearLab Corporation (NASDAQ:TEAR) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks NanoViricides Inc (NYSEMKT:NNVC) is as less popular as TEAR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.