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What Does Hedge Fund Sentiment Say About Affimed NV (AFMD)?

Due to the fact that Affimed NV (NASDAQ:AFMD) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there exists a select few money managers that slashed their full holdings in the third quarter. It’s worth mentioning that Anand Parekh’s Alyeska Investment Group dumped the largest investment of the 700 funds followed by Insider Monkey, valued at an estimated $1.9 million in stock, and Stuart Weisbrod’s Iguana Healthcare Management was right behind this move, as the fund cut about $1.3 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 1 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Affimed NV (NASDAQ:AFMD). These stocks are Stonegate Mortageg Corp (NYSE:SGM), Journal Media Group Inc (NYSE:JMG), USA Truck, Inc. (NASDAQ:USAK), and Guidance Software, Inc. (NASDAQ:GUID). All of these stocks’ market caps match AFMD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SGM 9 52682 -1
JMG 13 36983 0
USAK 12 18374 -2
GUID 11 30058 -1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. Journal Media Group Inc (NYSE:JMG) is the most popular stock in this table. On the other hand Stonegate Mortageg Corp (NYSE:SGM) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Affimed NV (NASDAQ:AFMD) registers the same level of popularity as SGM, although hedge funds amassed shares worth $59 million in aggregate during the third quarter. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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