Is Concert Pharmaceuticals Inc (CNCE) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Concert Pharmaceuticals Inc (NASDAQ:CNCE) headfirst. Fisher Asset Management, managed by Ken Fisher, initiated the most outsized position in Concert Pharmaceuticals Inc (NASDAQ:CNCE). According to its latest 13F filing, the fund had $1.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Chao Ku’s Nine Chapters Capital Management, Joel Greenblatt’s Gotham Asset Management, and Joseph Edelman’s Perceptive Advisors.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Concert Pharmaceuticals Inc (NASDAQ:CNCE) but similarly valued. We will take a look at Hawkins, Inc. (NASDAQ:HWKN), The Hackett Group, Inc. (NASDAQ:HCKT), Anchor BanCorp Wisconsin Inc. (NASDAQ:ABCW), and Connecticut Water Service, Inc. (NASDAQ:CTWS). This group of stocks’ market valuations resemble CNCE’s market valuation.

As you can see these stocks had an average of 101 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $80 million in CNCE’s case. The Hackett Group, Inc. (NASDAQ:HCKT) is the most popular stock in this table, while Connecticut Water Service, Inc. (NASDAQ:CTWS) is the least popular one with only 5 bullish hedge fund positions. Concert Pharmaceuticals Inc (NASDAQ:CNCE) is not the most popular stock in this group, but hedge fund interest is still above average. Although this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HCKT might be a better candidate to consider a long position.