Is ProNAi Therapeutics Inc (DNAI) Going to Burn These Hedge Funds?

Judging by the fact that ProNAi Therapeutics Inc (NASDAQ:DNAI) has weathered declining sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of money managers who were dropping their entire stakes last quarter. At the top of the heap, Daniel Gold’s QVT Financial cashed in the largest investment of all the hedgies monitored by Insider Monkey, worth close to $0.1 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund sold off about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to ProNAi Therapeutics Inc (NASDAQ:DNAI). These stocks are CytRx Corporation (NASDAQ:CYTR), VAALCO Energy, Inc. (NYSE:EGY), Christopher & Banks Corporation (NYSE:CBK), and ParkerVision, Inc. (NASDAQ:PRKR). This group of stocks’ market values are closest to DNAI’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $9 million in DNAI’s case. VAALCO Energy, Inc. (NYSE:EGY) is the most popular stock in this table. On the other hand ParkerVision, Inc. (NASDAQ:PRKR) is the least popular one with only 4 bullish hedge fund positions. ProNAi Therapeutics Inc (NASDAQ:DNAI) 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 EGY might be a better candidate to consider taking a long position in.

Disclosure: none.