How Aralez Pharmaceuticals Inc (ARLZ) Stacks Up Against Its Peers

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. Intriguingly, Renaissance Technologies, one of the largest hedge funds in the world said goodbye to the biggest stake of all the hedgies watched by Insider Monkey, totaling an estimated $1.8 million in stock. Michael Blitzer’s fund, Kingstown Capital Management, also sold off its stock, about $1.3 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) but similarly valued. These stocks are City Office REIT Inc (NYSE:CIO), Lionbridge Technologies, Inc. (NASDAQ:LIOX), Novan Inc (NASDAQ:NOVN), and Aerohive Networks Inc (NYSE:HIVE). This group of stocks’ market values resemble ARLZ’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CIO 6 21075 1
LIOX 17 72332 0
NOVN 5 18321 5
HIVE 10 28795 1

As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $93 million in ARLZ’s case. Lionbridge Technologies, Inc. (NASDAQ:LIOX) is the most popular stock in this table. On the other hand Novan Inc (NASDAQ:NOVN) is the least popular one with only 5 bullish hedge fund positions. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LIOX might be a better candidate to consider taking a long position in.

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Disclosure: None