Is Proteostasis Therapeutics Inc (PTI) a Good Stock to Buy?

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With a general bullishness amongst the heavyweights, specific money managers have jumped into Proteostasis Therapeutics Inc (NASDAQ:PTI) headfirst. Hillhouse Capital Management assembled the most outsized position in Proteostasis Therapeutics Inc (NASDAQ:PTI). Oleg Nodelman’s EcoR1 Capital also made a $9.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, James E. Flynn’s Deerfield Management, and Behzad Aghazadeh’s venBio Select Advisor.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Proteostasis Therapeutics Inc (NASDAQ:PTI) but similarly valued. These stocks are Perry Ellis International, Inc. (NASDAQ:PERY), AR Capital Acquisition Corp (NASDAQ:AUMA), Addus Homecare Corporation (NASDAQ:ADUS), and TICC Capital Corp. (NASDAQ:TICC). All of these stocks’ market caps are closest to PTI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PERY 12 20434 0
AUMA 11 117855 0
ADUS 5 7820 -1
TICC 5 5782 -3

As you can see these stocks had an average of eight hedge funds with bullish positions and the average amount invested in these stocks was $38 million, versus $89 million in PTI’s case. Perry Ellis International, Inc. (NASDAQ:PERY) is the most popular stock in this table, while Addus Homecare Corporation (NASDAQ:ADUS) is the least popular one with only five bullish hedge fund positions. Compared to these stocks Proteostasis Therapeutics Inc (NASDAQ:PTI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none

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