Is ChemoCentryx Inc (CCXI) A Stock Worth Buying?

Since ChemoCentryx Inc (NASDAQ:CCXI) has faced a decline in interest from the smart money, we can see that there is a sect of hedge funds who sold off their full holdings in the third quarter. At the top of the heap, Rob Romero’s Connective Capital Management dumped the biggest position of all the investors studied by Insider Monkey, comprising an estimated $0.9 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ChemoCentryx Inc (NASDAQ:CCXI) but similarly valued. These stocks are Nutraceutical Int’l Corp. (NASDAQ:NUTR), Control4 Corp (NASDAQ:CTRL), ASA Gold and Precious Metals Ltd (NYSE:ASA), and Ascent Capital Group Inc (NASDAQ:ASCMA). This group of stocks’ market caps are similar to CCXI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NUTR 4 24796 -1
CTRL 12 39487 2
ASA 4 19661 4
ASCMA 14 100266 2

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $60 million in CCXI’s case. Ascent Capital Group Inc (NASDAQ:ASCMA) is the most popular stock in this table. On the other hand Nutraceutical Int’l Corp. (NASDAQ:NUTR) is the least popular one with only 4 bullish hedge fund positions. ChemoCentryx Inc (NASDAQ:CCXI) 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 ASCMA might be a better candidate to consider taking a long position in.

Disclosure: None