Should You Buy MacroGenics Inc (MGNX)?

Now, key hedge funds have jumped into MacroGenics Inc (NASDAQ:MGNX) headfirst. Deerfield Management assembled the most outsized position in MacroGenics Inc (NASDAQ:MGNX). Deerfield Management had $11.9 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1 million position during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Nathan Fischel’s DAFNA Capital Management, and Chao Ku’s Nine Chapters Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as MacroGenics Inc (NASDAQ:MGNX) but similarly valued. These stocks are Hercules Technology Growth Capital Inc (NYSE:HTGC), Rofin-Sinar Technologies (NASDAQ:RSTI), ADTRAN, Inc. (NASDAQ:ADTN), and Luminex Corporation (NASDAQ:LMNX). This group of stocks’ market values is closest to MacroGenics Inc (NASDAQ:MGNX)’s market value.

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 $74 million. That figure was $163 million in MacroGenics Inc (NASDAQ:MGNX)’s case. Luminex Corporation (NASDAQ:LMNX) is the most popular stock in this table. On the other hand, ADTRAN, Inc. (NASDAQ:ADTN) is the least popular one with only 11 bullish hedge fund positions. MacroGenics Inc (NASDAQ:MGNX) 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, Luminex Corporation (NASDAQ:LMNX) might be a better candidate to consider a long position.