Should You Add Epizyme Inc (EPZM) to Your Portfolio?

As aggregate interest increased, key hedge funds were breaking ground themselves. PDT Partners, led by Peter Muller, assembled the most outsized position in Epizyme Inc (NASDAQ:EPZM). PDT Partners had $0.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.5 million position during the quarter. The only other fund with a brand new EPZM position is Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Epizyme Inc (NASDAQ:EPZM) but similarly valued. These stocks are PDF Solutions, Inc. (NASDAQ:PDFS), SP Plus Corp (NASDAQ:SP), K12 Inc. (NYSE:LRN), and Kforce Inc. (NASDAQ:KFRC). This group of stocks’ market values are closest to EPZM’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $65 million in EPZM’s case. K12 Inc. (NYSE:LRN) is the most popular stock in this table. On the other hand Kforce Inc. (NASDAQ:KFRC) is the least popular one with only 8 bullish hedge fund positions. Epizyme Inc (NASDAQ:EPZM) 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 LRN might be a better candidate to consider taking a long position in.

Disclosure: none