Is Tobira Therapeutics Inc (TBRA) A Good Stock To Buy?

As one would reasonably expect, key hedge funds have jumped into Tobira Therapeutics Inc (NASDAQ:TBRA) headfirst. Pentwater Capital Management, led by Matthew Halbower, assembled the most outsized position in Tobira Therapeutics Inc (NASDAQ:TBRA). John Paulson’s Paulson & Co also made a $42.5 million investment in the stock during the quarter. The other funds with brand new TBRA positions are Isaac Corre’s Governors Lane, Seth Klarman’s Baupost Group, and Ari Zweiman’s 683 Capital Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Tobira Therapeutics Inc (NASDAQ:TBRA) but similarly valued. We will take a look at Daqo New Energy Corp (NYSE:DQ), Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR), Miller Industries, Inc. (NYSE:MLR), and Pacific Ethanol Inc (NASDAQ:PEIX). This group of stocks’ market valuations resemble TBRA’s market valuation.

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 $38 million. That figure was $373 million in TBRA’s case. Pacific Ethanol Inc (NASDAQ:PEIX) is the most popular stock in this table. On the other hand Fifth Street Senior Floating Rate Corp (NASDAQ:FSFR) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Tobira Therapeutics Inc (NASDAQ:TBRA) 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.