Euronet Worldwide, Inc. (EEFT): Should You Be Worried About Falling Smart Money Ownership?

Since Euronet Worldwide, Inc. (NASDAQ:EEFT) has faced bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that George Hall’s Clinton Group sold off the largest investment of all the hedgies followed by Insider Monkey, totaling close to $11.3 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund said goodbye to about $4.1 million worth of shares. These moves are interesting, as total hedge fund interest was cut by 6 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Euronet Worldwide, Inc. (NASDAQ:EEFT). These stocks are LATAM Airlines Group SA (ADR) (NYSE:LFL), Alere Inc (NYSE:ALR), Ritchie Bros. Auctioneers (USA) (NYSE:RBA), and MAXIMUS, Inc. (NYSE:MMS). This group of stocks’ market valuations are closest to EEFT’s market valuation.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $338 million. That figure was $233 million in EEFT’s case. Alere Inc (NYSE:ALR) is the most popular stock in this table. On the other hand LATAM Airlines Group SA (ADR) (NYSE:LFL) is the least popular one with only 8 bullish hedge fund positions. Euronet Worldwide, Inc. (NASDAQ:EEFT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ALR might be a better candidate to consider for a long position.

Disclosure: None