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How Cempra Inc (CEMP) Stacks Up Against Its Peers?

As one would reasonably expect, key hedge funds have been driving this bullishness. GAMCO Investors, led by Mario Gabelli, initiated the largest position in Cempra Inc (NASDAQ:CEMP). GAMCO Investors had $1.3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.8 million position during the quarter. The following funds were also among the new CEMP investors: Kerr Neilson’s Platinum Asset Management, Behzad Aghazadeh’s venBio Select Advisor, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s check out hedge fund activity in other stocks similar to Cempra Inc (NASDAQ:CEMP). These stocks are Adams Diversified Equity Fund Inc (NYSE:ADX), Headwaters Inc (NYSE:HW), e.l.f. Beauty Inc (NYSE:ELF), and Glaukos Corp (NYSE:GKOS). This group of stocks’ market caps match CEMP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ADX 4 6090 4
HW 23 85313 0
ELF 24 62106 24
GKOS 19 175123 3

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $165 million in CEMP’s case. e.l.f. Beauty Inc (NYSE:ELF) is the most popular stock in this table. On the other hand Adams Diversified Equity Fund Inc (NYSE:ADX) is the least popular one with only 4 bullish hedge fund positions. Cempra Inc (NASDAQ:CEMP) 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 ELF might be a better candidate to consider taking a long position in.

Disclosure: None