Is Regenxbio Inc (RGNX) a Good Buy?

As one would reasonably expect, key hedge funds have been driving this bullishness. Brookside Capital, managed by Bain Capital, established the most outsized position in Regenxbio Inc (NASDAQ:RGNX). Brookside Capital had $42.6 million invested in the company at the end of the quarter. James E. Flynn’s Deerfield Management also initiated a $29.4 million position during the quarter. The following funds were also among the new RGNX investors: Anders Hove and Bong Koh’s VHCP Management, Joseph Edelman’s Perceptive Advisors, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Regenxbio Inc (NASDAQ:RGNX) but similarly valued. We will take a look at U.S. Physical Therapy, Inc. (NYSE:USPH), Habit Restaurants Inc (NASDAQ:HABT), American Residential Properties Inc (NYSE:ARPI), and TrustCo Bank Corp NY (NASDAQ:TRST). This group of stocks’ market valuations are similar to RGNX’s market valuation.

As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $146 million in RGNX’s case. U.S. Physical Therapy, Inc. (NYSE:USPH) is the most popular stock in this table. On the other hand TrustCo Bank Corp NY (NASDAQ:TRST) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Regenxbio Inc (NASDAQ:RGNX) 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.