Should You Buy Aquinox Pharmaceuticals Inc (AQXP)?

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As aggregate interest increased, key money managers have been driving this bullishness. Redmile Group made a $7.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Jeffrey Jay and David Kroin’s Great Point Partners, Hal Mintz’s Sabby Capital, and Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks similar to Aquinox Pharmaceuticals Inc (NASDAQ:AQXP). These stocks are Ares Dynamic Credit Allocation Fund Inc (NYSE:ARDC), McEwen Mining Inc (NYSE:MUX), United Community Financial Corp (NASDAQ:UCFC), and Tuesday Morning Corporation (NASDAQ:TUES). This group of stocks’ market values is similar to Aquinox Pharmaceuticals Inc (NASDAQ:AQXP)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ARDC 4 9686 2
MUX 7 7806 -3
UCFC 11 22815 0
TUES 13 42329 -3

As you can see, these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $152 million in Aquinox Pharmaceuticals Inc (NASDAQ:AQXP)’s case. Tuesday Morning Corporation (NASDAQ:TUES) is the most popular stock in this table. On the other hand, Ares Dynamic Credit Allocation Fund Inc (NYSE:ARDC) is the least popular one with only 4 bullish hedge fund positions. Aquinox Pharmaceuticals Inc (NASDAQ:AQXP) 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, Tuesday Morning Corporation (NASDAQ:TUES) might be a better candidate to consider a long position.

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