How Top Money Managers Are Trading Infinity Pharmaceuticals Inc. (INFI)

Judging by the fact that Infinity Pharmaceuticals Inc. (NASDAQ:INFI) has witnessed falling interest from hedge fund managers, we can see that there lies a certain “tier” of hedgies that elected to cut their entire stakes in the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest position of the “upper crust” of funds tracked by Insider Monkey, valued at about $3.4 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund dropped about $2 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest dropped by 1 fund in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Infinity Pharmaceuticals Inc. (NASDAQ:INFI) but similarly valued. We will take a look at Myers Industries, Inc. (NYSE:MYE), Omeros Corporation (NASDAQ:OMER), First Financial Corp (NASDAQ:THFF), and FairPoint Communications Inc (NASDAQ:FRP). This group of stocks’ market caps are closest to INFI’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $100 million in INFI’s case. FairPoint Communications Inc (NASDAQ:FRP) is the most popular stock in this table. On the other hand Myers Industries, Inc. (NYSE:MYE) is the least popular one with only 7 bullish hedge fund positions. Infinity Pharmaceuticals Inc. (NASDAQ:INFI) 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 pouring money into also. In this regard FRP might be a better candidate to consider a long position in.