Medivation Inc (MDVN): Are Hedge Funds Right About This Stock?

Judging by the fact that Medivation Inc (NASDAQ:MDVN) has experienced a fall in interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds that slashed their full holdings in the third quarter. Interestingly, Samuel Isaly’s OrbiMed Advisors cut the largest position of all the hedgies monitored by Insider Monkey, totaling an estimated $161.4 million in stock. Julian Baker and Felix Baker’s fund, Baker Bros. Advisors, also dropped its stock, about $75 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 5 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Medivation Inc (NASDAQ:MDVN). We will take a look at Advance Auto Parts, Inc. (NYSE:AAP), Rogers Communications Inc. (USA) (NYSE:RCI), C.R. Bard, Inc. (NYSE:BCR), and Magellan Midstream Partners, L.P. (NYSE:MMP). This group of stocks’ market values resemble MDVN’s market value.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $818 million. That figure was $1.16 billion in MDVN’s case. Advance Auto Parts, Inc. (NYSE:AAP) is the most popular stock in this table, while Rogers Communications Inc. (USA) (NYSE:RCI) is the least popular one with only 15 bullish hedge fund positions. Medivation Inc (NASDAQ:MDVN) 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 AAP might be a better candidate to consider a long position.