Biotech Microcap Stocks Attract Hedge Fund Interest

    Author Ken DarePosted on Categories BiotechTags , , , , , , , , , , , , , , , , , , , ,

    As volatile economic conditions push many investors into safe-haven investments like gold and silver, there may be “buy low” options opening up in biotech microcap stocks.

    As an article on Yahoo Finance recently pointed out, several factors have combined to push down prices in the biotech sector. These factors include:

    • Rising interest rates
    • Clinical trial failures
    • Regulatory setbacks
    • Escalating drug prices
    • And more

    The good news for investors is that this market correction “has placed biotech stocks in deep value territory,” Yahoo Finance says.

    One indication of the value that investors can find in this sector is the increased hedge fund interest that is occurring there.

    While microcap, or penny, stock investing is always risky, hedge fund interest can indicate that a market expert believes in the quality and dependability of a company.

    So What Biotech Stocks Are Hedge Funds Interested in Right Now?

    Here are three that are drawing big-time attention:

    • ReWalk Robotics Ltd. (NASDAQ:RWLK) – 1.01 (USD)/63.20 million market cap (July 13)

    This company, which is located in Israel, creates medical devices. Among its devices is an exoskeleton designed for people with mobility impairments. That product is gaining popularity in Europe and could ultimately be seen as an alternative to wheelchairs.

    The company currently has three hedge fund investors, including Sabby Capital, which owns 1 million shares.

    • Alzamend Neuro, Inc. (NASDAQ:ALZN) – 0.95 (USD)/85.60 million market cap (July 13)

    This company, which develops drugs for neurodegenerative diseases, and psychiatric illnesses, recently announced enrollment in a Phase II study of its Alzheimer’s disease drug would begin this year. 

    This stock also has three hedge fund investors, including Marshall Wace LLP, a London-based investment firm that owns 163,774 shares of Alzamend Neuro.

    • American Shared Hospital Services (NYSE:AMS) – 2.26 (USD)/13.75 million market cap (July 13) 

    This company leases radiation therapy and radiosurgery equipment to healthcare companies. One of its most in-demand devices is Gamma Knife stereotactic radiosurgery equipment, which treats malignant and benign brain tumors and arteriovenous malformations non-invasively.

    American Shared Hospital Services has two hedge fund investors, including Two Sigma Advisors, which owns 17,100 shares.

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