Should You Buy Aerie Pharmaceuticals Inc (AERI)?

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Now, specific money managers have been driving this bullishness. OrbiMed Advisors, led by Samuel Isaly, created the biggest position in Aerie Pharmaceuticals Inc (NASDAQ:AERI). According to regulatory filings, the fund had $30.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $21.1 million position during the quarter. The other funds with new positions in the stock are Behzad Aghazadeh’s venBio Select Advisor, Joseph Edelman’s Perceptive Advisors, and Ken Greenberg and David Kim’s Ghost Tree Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Aerie Pharmaceuticals Inc (NASDAQ:AERI) but similarly valued. These stocks are James River Group Holdings Ltd (NASDAQ:JRVR), Amicus Therapeutics, Inc. (NASDAQ:FOLD), Atlantic Tele-Network, Inc. (NASDAQ:ATNI), and Callidus Software Inc. (NASDAQ:CALD). This group of stocks’ market values match AERI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JRVR 12 528157 3
FOLD 21 373077 -2
ATNI 10 48009 1
CALD 19 129626 0

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $270 million. That figure was $395 million in AERI’s case. Amicus Therapeutics, Inc. (NASDAQ:FOLD) is the most popular stock in this table. On the other hand Atlantic Tele-Network, Inc. (NASDAQ:ATNI) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Aerie Pharmaceuticals Inc (NASDAQ:AERI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.

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