This Metric Says It May Be Time to Buy Achillion Pharmaceuticals, Inc. (ACHN)

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As one would reasonably expect, specific money managers have jumped into Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) headfirst. Perceptive Advisors, managed by Joseph Edelman, assembled the largest position in Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN). Perceptive Advisors had $7.5 million invested in the company at the end of the quarter. Jason Karp’s Tourbillon Capital Partners also made a $7.5 million investment in the stock during the quarter. The other funds with brand new ACHN positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’ Renaissance Technologies, and Anders Hove and Bong Koh’s VHCP Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) but similarly valued. We will take a look at Multi-Color Corporation (NASDAQ:LABL), Abaxis Inc (NASDAQ:ABAX), Redwood Trust, Inc. (NYSE:RWT), and Badger Meter, Inc. (NYSE:BMI). All of these stocks’ market caps are similar to ACHN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LABL 7 45924 3
ABAX 8 26481 -2
RWT 11 141284 0
BMI 14 45972 4

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 $65 million. That figure was $349 million in ACHN’s case. Badger Meter, Inc. (NYSE:BMI) is the most popular stock in this table. On the other hand Multi-Color Corporation (NASDAQ:LABL) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) is more popular among hedge funds. Considering that hedge funds are extremely 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

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