Interestingly, Oleg Nodelman’s EcoR1 Capital dropped the biggest position of the “upper crust” of funds watched by Insider Monkey, valued at close to $4.2 million in stock. Jim Simons’ fund, Renaissance Technologies, also said goodbye to its stock, about $1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 1 funds heading into Q2.
Let’s now review hedge fund activity in other stocks similar to OvaScience Inc (NASDAQ:OVAS). These stocks are American Software, Inc. (NASDAQ:AMSWA), Syneron Medical Ltd. (NASDAQ:ELOS), Bazaarvoice Inc (NASDAQ:BV), and AV Homes Inc (NASDAQ:AVHI). All of these stocks’ market caps match OVAS’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
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 $51 million. That figure was $53 million in OVAS’s case. Bazaarvoice Inc (NASDAQ:BV) is the most popular stock in this table. On the other hand, AV Homes Inc (NASDAQ:AVHI) is the least popular one with only 5 bullish hedge fund positions. OvaScience Inc (NASDAQ:OVAS) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BV might be a better candidate to consider a long position.