Is Zeltiq Aesthetics Inc (ZLTQ) A Good Stock To Buy?

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Consequently, specific money managers have jumped into Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) headfirst. Pura Vida Investments, managed by Efrem Kamen, assembled the biggest position in Zeltiq Aesthetics Inc (NASDAQ:ZLTQ). Pura Vida Investments had $3.5 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $1.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Daniel S. Och’s OZ Management, and Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) but similarly valued. We will take a look at Theravance Biopharma Inc (NASDAQ:TBPH), United Fire Group, Inc. (NASDAQ:UFCS), Transportadora de Gas del Sur SA (ADR) (NYSE:TGS), and Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM). This group of stocks’ market valuations are closest to ZLTQ’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TBPH 12 696845 0
UFCS 9 21840 -2
TGS 6 20610 -1
TSEM 26 237449 9

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $244 million. That figure was $291 million in ZLTQ’s case. Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) is the most popular stock in this table. On the other hand Transportadora de Gas del Sur SA (ADR) (NYSE:TGS) is the least popular one with only 6 bullish hedge fund positions. Zeltiq Aesthetics Inc (NASDAQ:ZLTQ) 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 TSEM might be a better candidate to consider a long position in.

Disclosure: None

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