Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. It’s worth mentioning that Renaissance Technologies, one of the largest hedge funds in the world, dropped the largest investment of the 700 funds monitored by Insider Monkey, valued at close to $1.8 million in Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) stock, and Michael Blitzer’s Kingstown Capital Management was right behind this move, as the fund said goodbye to about $1.3 million worth of shares.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) but similarly valued. These stocks are City Office REIT Inc (NYSE:CIO), Lionbridge Technologies, Inc. (NASDAQ:LIOX), Novan Inc (NASDAQ:NOVN), and Aerohive Networks Inc (NYSE:HIVE). This group of stocks’ market caps are similar to ARLZ’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $93 million in ARLZ’s case. Lionbridge Technologies, Inc. (NASDAQ:LIOX) is the most popular stock in this table. On the other hand Novan Inc (NASDAQ:NOVN) is the least popular one with only 5 bullish hedge fund positions. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) 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 piling on. In this regard LIOX might be a better candidate to consider taking a long position in.