Is Ultragenyx Pharmaceutical Inc (RARE) Going to Burn These Hedge Funds?

Now, key money managers have jumped into Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) headfirst. Columbus Circle Investors, managed by Clifford Fox, established the biggest position in Ultragenyx Pharmaceutical Inc (NASDAQ:RARE). Columbus Circle Investors had $14.5 million invested in the company at the end of the quarter. Peter Kolchinsky’s RA Capital Management also initiated an $5.4 million position during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, D. E. Shaw’s D E Shaw, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks similar to Ultragenyx Pharmaceutical Inc (NASDAQ:RARE). These stocks are Validus Holdings, Ltd. (NYSE:VR), Guidewire Software Inc (NYSE:GWRE), Colfax Corp (NYSE:CFX), and CPFL Energia S.A. (ADR) (NYSE:CPL). This group of stocks’ market caps match RARE’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $273 million. That figure was $331 million in RARE’s case. Colfax Corp (NYSE:CFX) is the most popular stock in this table, while CPFL Energia S.A. (ADR) (NYSE:CPL) is the least popular one with only 6 bullish hedge fund positions. Ultragenyx Pharmaceutical Inc (NASDAQ:RARE) 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 CFX might be a better candidate to consider a long position.