Should You Buy Inotek Pharmaceuticals Corp (ITEK)?

As aggregate interest increased, some big names have jumped into Inotek Pharmaceuticals Corp (NASDAQ:ITEK) headfirst. DAFNA Capital Management, led by Nathan Fischel, created the most outsized position in Inotek Pharmaceuticals Corp (NASDAQ:ITEK). DAFNA Capital Management had $2.2 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also made a $1.6 million investment in the stock during the quarter. The other funds with brand new ITEK positions are Jeffrey Jay and David Kroin’s Great Point Partners, Dmitry Balyasny’s Balyasny Asset Management, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Inotek Pharmaceuticals Corp (NASDAQ:ITEK). We will take a look at Nam Tai Property Inc (NYSE:NTP), Quotient Ltd (NASDAQ:QTNT), Ascent Capital Group Inc (NASDAQ:ASCMA), and Black Box Corporation (NASDAQ:BBOX). This group of stocks’ market values are closest to ITEK’s market value.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $55 million. That figure was $51 million in ITEK’s case. Ascent Capital Group Inc (NASDAQ:ASCMA) is the most popular stock in this table. On the other hand Nam Tai Property Inc (NYSE:NTP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Inotek Pharmaceuticals Corp (NASDAQ:ITEK) 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