Here Is Why Investors Are Pushing Foamix Pharmaceuticals Ltd (FOMX) Higher Today

Because Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) has witnessed declining sentiment from the smart money, it’s safe to say that there is a sect of hedge funds that elected to cut their entire stakes heading into Q4. Interestingly, Jacob Gottlieb’s Visium Asset Management sold off the largest position of the 700 funds followed by Insider Monkey, worth an estimated $7.9 million in stock, and Matthew Halbower’s Pentwater Capital Management was right behind this move, as the fund cut about $2 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Foamix Pharmaceuticals Ltd (NASDAQ:FOMX). These stocks are Eagle Bulk Shipping Inc. (NASDAQ:EGLE), PICO Holdings Inc (NASDAQ:PICO), Ducommun Incorporated (NYSE:DCO), and Eaton Vance Senior Income Trust (NYSE:EVF). This group of stocks’ market values are closest to FOMX’s market value.

As you can see from the table, these stocks have attracted investments from an average of 8 top hedge funds. The average amount invested in these companies was $54 million, with FOMX not far behind, with $50 million of the hedgies money. With 12 long positons, Ducommun Incorporated (NYSE:DCO) is the most popular stock in this mix, but it is no match for Foamix Pharmaceuticals, which managed to attract the attention of 18 elite funds by the end of the quarter. Summing up, FOMX might have lost some of the appeal over the quarter, but hedge funds still like it better than its market cap peers. The recent news might give the stock a further boost, so it may be a good idea to analyze it in detail and potentially include it in your portfolio.