Is Merrimack Pharmaceuticals Inc (MACK) A Good Stock To Buy?

Now, specific money managers have jumped into Merrimack Pharmaceuticals Inc (NASDAQ:MACK) headfirst. The other funds with new positions in the stock are  Indus Capital, George McCabe’s Portolan Capital Management, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Merrimack Pharmaceuticals Inc (NASDAQ:MACK) but similarly valued. These stocks are iKang Healthcare Group Inc (ADR) (NASDAQ:KANG), Foundation Medicine Inc (NASDAQ:FMI), Independent Bank Group Inc (NASDAQ:IBTX), and Apptio Inc (NASDAQ:APTI). This group of stocks’ market caps are closest to MACK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KANG 12 63122 2
FMI 11 28333 3
IBTX 9 27629 -3
APTI 14 10673 14

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $82 million in MACK’s case. Apptio Inc (NASDAQ:APTI) is the most popular stock in this table. On the other hand Independent Bank Group Inc (NASDAQ:IBTX) is the least popular one with only 9 bullish hedge fund positions. Merrimack Pharmaceuticals Inc (NASDAQ:MACK) 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 APTI might be a better candidate to consider taking a long position in.

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