Is FibroGen Inc (FGEN) a Good Stock to Buy?

Because FibroGen Inc (NASDAQ:FGEN) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of funds that decided to sell off their full holdings by the end of the third quarter. Intriguingly, David Costen Haley’s HBK Investments dumped the biggest position of all the hedgies watched by Insider Monkey, totaling close to $1.9 million in stock. John Thiessen’s fund, Vertex One Asset Management, also cut its stock, about $1.3 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as FibroGen Inc (NASDAQ:FGEN) but similarly valued. We will take a look at Advantage Oil & Gas Ltd (USA) (NYSE:AAV), Infinera Corp. (NASDAQ:INFN), Natus Medical Inc (NASDAQ:BABY), and CVR Refining LP (NYSE:CVRR). This group of stocks’ market values are similar to FGEN’s market value.

As you can see these stocks had an average of 12 funds with long positions and the average amount invested in these stocks was $57 million. That figure was $103 million in FGEN’s case. Infinera Corp. (NASDAQ:INFN) is the most popular stock in this table. On the other hand CVR Refining LP (NYSE:CVRR) is the least popular one with only six bullish hedge fund positions. FibroGen Inc (NASDAQ:FGEN) 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 Infinera Corp. (NASDAQ:INFN) might be a better candidate to consider taking a long position in.

Disclosure: none