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Should You Avoid Orexigen Therapeutics, Inc. (OREX)?

Because Orexigen Therapeutics, Inc. (NASDAQ:OREX) has encountered falling interest from hedge fund managers, we can see that there were a few funds that decided to sell off their positions entirely by the end of the third quarter. It’s worth mentioning Robert Pohly’s Samlyn Capital was a seller, as the fund cut about $2.6 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Orexigen Therapeutics, Inc. (NASDAQ:OREX). These stocks are Threshold Pharmaceuticals, Inc. (NASDAQ:THLD), Cogentix Medical Inc (NASDAQ:CGNT), MoSys Inc. (NASDAQ:MOSY), and CAS Medical Systems Inc (NASDAQ:CASM). All of these stocks’ market caps are closest to OREX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
THLD 8 4611 -4
CGNT 6 9323 0
MOSY 4 1174 0
CASM 3 6937 -1

As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $13 million in OREX’s case. Threshold Pharmaceuticals, Inc. (NASDAQ:THLD) is the most popular stock in this table. On the other hand CAS Medical Systems Inc (NASDAQ:CASM) is the least popular one with only 3 bullish hedge fund positions. Orexigen Therapeutics, Inc. (NASDAQ:OREX) is the most popular stock in this group. The stock could be worth a closer look.

Disclosure: None