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Is Wright Medical Group Inc (WMGI) a Good Stock for Your Portfolio?

Judging by the fact that Wright Medical Group Inc (NASDAQ:WMGI) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of funds who were dropping their entire stakes during the third quarter. It’s worth mentioning that Stephen DuBois’s Camber Capital Management said goodbye to the largest investment of the “upper crust” of funds watched by Insider Monkey, worth about $43 million in call options.

Let’s now take a look at hedge fund activity in other stocks similar to Wright Medical Group Inc (NASDAQ:WMGI). These stocks are Exelixis, Inc. (NASDAQ:EXEL), Northwest Natural Gas Co (NYSE:NWN), Greif, Inc. (NYSE:GEF), and Tetra Tech, Inc. (NASDAQ:TTEK). This group of stocks’ market caps are closest to WMGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EXEL 34 505946 13
NWN 12 53058 -2
GEF 20 183000 -1
TTEK 18 74714 1

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $204 million at the end of September. That figure was $658 million in WMGI’s case. Exelixis, Inc. (NASDAQ:EXEL) is the most popular stock in this table. On the other hand Northwest Natural Gas Co (NYSE:NWN) is the least popular one with only 12 bullish hedge fund positions. Wright Medical Group Inc (NASDAQ:WMGI) 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 Exelixis, Inc. (NASDAQ:EXEL) might be a better candidate to consider a long position.

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