Is NQ Mobile Inc (ADR) (NQ) Going to Burn These Hedge Funds?

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With a general bullishness amongst the heavyweights, some big names have jumped into NQ Mobile Inc (ADR) (NYSE:NQ) headfirst. Israel Englander’s Millennium Management created the biggest position in NQ Mobile Inc (ADR) (NYSE:NQ), worth roughly $1.2 million at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.5 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks similar to NQ Mobile Inc (ADR) (NYSE:NQ). We will take a look at Park Electrochemical Corp. (NYSE:PKE), Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI), OncoMed Pharmaceuticals Inc (NASDAQ:OMED), and Organovo Holdings Inc (NYSEMKT:ONVO). This group of stocks’ market values resemble NQ’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PKE 7 80580 0
HYI 1 2363 -1
OMED 14 56730 6
ONVO 9 3356 2

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $10 million in NQ’s case. OncoMed Pharmaceuticals Inc (NASDAQ:OMED) is the most popular stock in this table. On the other hand Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI) is the least popular one with only 1 bullish hedge fund positions. NQ Mobile Inc (ADR) (NYSE:NQ) 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 OMED might be a better candidate to consider taking a long position in.

Disclosure: None


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