Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Aralez Pharmaceuticals Inc (ARLZ) Going To Burn These Hedge Funds?

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
CIO 6 21075 1
LIOX 17 72332 0
NOVN 5 18321 5
HIVE 10 28795 1

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.

Suggested Articles:
Most Respected Professions That Pay Well
Most Popular Japanese Girl Bands
Smartphones With Wireless Charging

Disclosure: None