Should You Buy T2 Biosystems Inc (TTOO)?

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Consequently, key hedge funds were breaking ground themselves. Pura Vida Investments assembled the most outsized position in T2 Biosystems Inc (NASDAQ:TTOO). Pura Vida Investments had $0.4 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also initiated a $0.2 million position during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as T2 Biosystems Inc (NASDAQ:TTOO) but similarly valued. These stocks are Southern First Bancshares, Inc. (NASDAQ:SFST), First Northwest BanCorp (NASDAQ:FNWB), Codorus Valley Bancorp, Inc. (NASDAQ:CVLY), and Central Valley Community Bancorp (NASDAQ:CVCY). This group of stocks’ market caps are similar to TTOO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFST 6 22351 0
FNWB 4 14324 -1
CVLY 3 9360 -1
CVCY 4 9864 4

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $50 million in TTOO’s case. Southern First Bancshares, Inc. (NASDAQ:SFST) is the most popular stock in this table. On the other hand Codorus Valley Bancorp, Inc. (NASDAQ:CVLY) is the least popular one with only 3 bullish hedge fund positions. T2 Biosystems Inc (NASDAQ:TTOO) 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 SFST might be a better candidate to consider taking a long position in.

Disclosure: None

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