How Zafgen Inc (ZFGN) Stacks Up Against Its Peers

Seeing as Zafgen Inc (NASDAQ:ZFGN) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of fund managers that slashed their positions entirely last quarter. Interestingly, James E. Flynn’s Deerfield Management cut the biggest investment of the 700 funds monitored by Insider Monkey, valued at close to $18.3 million in stock, and Farallon Capital was right behind this move, as the fund dumped about $5 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Zafgen Inc (NASDAQ:ZFGN) but similarly valued. We will take a look at Akarti Therapeutics PLC (ADR) (NASDAQ:AKTX), Cherokee Inc. (NASDAQ:CHKE), Fate Therapeutics Inc (NASDAQ:FATE), and PC Tel Inc (NASDAQ:PCTI). All of these stocks’ market caps are similar to ZFGN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AKTX 7 18717 -2
CHKE 6 36004 0
FATE 5 15736 2
PCTI 4 24675 0

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $7 million in ZFGN’s case. Akarti Therapeutics PLC (ADR) (NASDAQ:AKTX) is the most popular stock in this table. On the other hand PC Tel Inc (NASDAQ:PCTI) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Zafgen Inc (NASDAQ:ZFGN) 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