Judging by the fact that Protalix BioTherapeutics Inc. (NYSEMKT:PLX) has faced a bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of fund managers that slashed their positions entirely by the end of the third quarter. At the top of the heap, Chao Ku’s Nine Chapters Capital Management said goodbye to the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $0.1 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $20,000 worth of shares. These moves are important to note, as total hedge fund interest fell by 2 funds by the end of the third quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Protalix BioTherapeutics Inc. (NYSEMKT:PLX) but similarly valued. We will take a look at Recro Pharma Inc (NASDAQ:REPH), American Capital Senior Floating Ltd (NASDAQ:ACSF), Community Financial Corp (NASDAQ:TCFC), and Neothetics Inc (NASDAQ:NEOT). All of these stocks’ market caps are similar to Protalix BioTherapeutics Inc. (NYSEMKT:PLX)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $17 million in Protalix BioTherapeutics Inc. (NYSEMKT:PLX)’s case. Recro Pharma Inc (NASDAQ:REPH) is the most popular stock in this table. On the other hand, American Capital Senior Floating Ltd (NASDAQ:ACSF) is the least popular one with only 4 bullish hedge fund positions. Protalix BioTherapeutics Inc. (NYSEAMEX:PLX) 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, Recro Pharma Inc (NASDAQ:REPH) might be a better candidate to consider a long position.