Should You Buy Beigene Ltd (ADR) (BGNE)?

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As aggregate interest increased, key money managers were leading the bulls’ herd. Perceptive Advisors, led by Joseph Edelman, established the biggest position in Beigene Ltd (ADR) (NASDAQ:BGNE). Perceptive Advisors had $4.1 million invested in the company at the end of the quarter. Yi Xin’s Ariose Capital also made a $1.3 million investment in the stock during the quarter. The other funds with brand new BGNE positions are Jim Simons’ Renaissance Technologies and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s check out hedge fund activity in other stocks similar to Beigene Ltd (ADR) (NASDAQ:BGNE). These stocks are Chimerix Inc (NASDAQ:CMRX), Capitol Acquisition Corp III (NASDAQ:CLACU), B. Riley Financial Inc (NASDAQ:RILY), and Handy and Harman Ltd (NASDAQ:HNH). This group of stocks’ market valuations are similar to BGNE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMRX 15 40229 2
CLACU 13 128330 1
RILY 6 64365 0
HNH 3 188746 -1

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 $105 million. That figure was $122 million in BGNE’s case. Chimerix Inc (NASDAQ:CMRX) is the most popular stock in this table. On the other hand Handy and Harman Ltd (NASDAQ:HNH) is the least popular one with only 3 bullish hedge fund positions. Beigene Ltd (ADR) (NASDAQ:BGNE) 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 CMRX might be a better candidate to consider taking a long position in.

Disclosure: None

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