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Why OvaScience Inc (OVAS)’s Stock Dropped on Thursday?

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
AMSWA 6 18867 0
ELOS 14 88615 0
BV 18 76850 -4
AVHI 5 17844 -4

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.

Disclosure: None

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