How Smart Money Is Trading United Therapeutics Corporation (UTHR)

Because United Therapeutics Corporation (NASDAQ:UTHR) has faced falling interest from the smart money, it’s easy to see that there were a few money managers who sold off their positions entirely in the third quarter. It’s worth mentioning that Mitchell Blutt’s Consonance Capital Management dumped the largest position of all the hedgies watched by Insider Monkey, totaling close to $67.4 million in stock, while Zach Schreiber of Point State Capital was right behind this move, as the fund sold off about $47.8 million worth of UTHR shares. These transactions are important to note, as aggregate hedge fund interest was cut by 7 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as United Therapeutics Corporation (NASDAQ:UTHR) but similarly valued. We will take a look at Flextronics International Ltd. (NASDAQ:FLEX), Xylem Inc (NYSE:XYL), SVB Financial Group (NASDAQ:SIVB), and Macquarie Infrastructure Company LLC (NYSE:MIC). This group of stocks’ market caps are similar to UTHR’s market cap.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $923 million. That figure was $1.59 billion in UTHR’s case, which is a positive sign. Macquarie Infrastructure Company LLC (NYSE:MIC) is the most popular stock in this table, while Xylem Inc (NYSE:XYL) is at the other end of the specter, with only 23 bullish hedge fund positions. United Therapeutics Corporation (NASDAQ:UTHR) 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 MIC might be a better candidate to consider a long position.