How Akorn, Inc. (AKRX) Stacks Up Against Its Peers

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Seeing as Akorn, Inc. (NASDAQ:AKRX) has experienced falling interest from hedge fund managers, we can see that there was a specific group of fund managers who sold off their entire stakes last quarter. Interestingly, Scott Ferguson’s Sachem Head Capital cut the largest stake of all the hedgies monitored by Insider Monkey, valued at an estimated $70.1 million in stock, and Arthur B Cohen and Joseph Healey’s Healthcor Management LP was right behind this move, as the fund dropped about $59.8 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 6 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to Akorn, Inc. (NASDAQ:AKRX). We will take a look at Thor Industries, Inc. (NYSE:THO), Paramount Group Inc (NYSE:PGRE), Western Alliance Bancorporation (NYSE:WAL), and RPC, Inc. (NYSE:RES). This group of stocks’ market values match AKRX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
THO 25 317743 2
PGRE 14 243991 3
WAL 26 249621 -8
RES 22 317348 2

As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $501 million in AKRX’s case. Western Alliance Bancorporation (NYSE:WAL) is the most popular stock in this table. On the other hand Paramount Group Inc (NYSE:PGRE) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Akorn, Inc. (NASDAQ:AKRX) 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

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