Is Alcobra Ltd (ADHD) Worthy of Your Portfolio?

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Judging by the fact that Alcobra Ltd (NASDAQ:ADHD) has sustained declining sentiment from the smart money, we can see that there exists a select few fund managers that slashed their entire stakes during the third quarter. At the top of the heap, Jeffrey Jay and David Kroin’s Great Point Partners sold off the biggest position of all the hedgies watched by Insider Monkey, totaling an estimated $6.4 million in stock. James E. Flynn’s fund, Deerfield Management, also said goodbye to its stock, about $4.8 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Alcobra Ltd (NASDAQ:ADHD) but similarly valued. These stocks are Stone Energy Corporation (NYSE:SGY), PB Bancorp Inc (NASDAQ:PBBI), AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), and Rentech, Inc. (NYSEAMEX:RTK). This group of stocks’ market valuations are similar to ADHD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SGY 4 2322 -4
PBBI 3 3900 0
AVEO 8 7969 -2
RTK 6 12533 -1

As you can see these stocks had an average of just five funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $28 million in ADHD’s case. AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) is the most popular stock in this table. On the other hand PB Bancorp Inc (NASDAQ:PBBI) is the least popular one with only three funds holding shares. Compared to these stocks Alcobra Ltd (NASDAQ:ADHD) 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

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