Seeing as Harbinger Group Inc (NYSE:HRG) has experienced a falling interest from the smart money, logic holds that there was a specific group of hedgies that elected to cut their full holdings in the third quarter. Intriguingly, Chuck Royce’s Royce & Associates cut the biggest investment of the 700 funds monitored by Insider Monkey, comprising about $6.3 million in stock. Min Htoo and Jordan Teramo’s fund, Anandar Capital Management, also said goodbye to its stock, about $3.7 million worth of shares. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also examine hedge fund activity in other stocks similar to Harbinger Group Inc (NYSE:HRG). These stocks are Laclede Group Inc (NYSE:LG), Cantel Medical Corp. (NYSE:CMN), Churchill Downs, Inc. (NASDAQ:CHDN), and Murphy USA Inc (NYSE:MUSA). All of these stocks’ market caps match Harbinger Group Inc (NYSE:HRG)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LG | 8 | 84602 | -1 |
| CMN | 6 | 133874 | 0 |
| CHDN | 26 | 765391 | 4 |
| MUSA | 22 | 208731 | 3 |
As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $298 million. That figure was $1.67 million in Harbinger Group Inc (NYSE:HRG)’s case. Churchill Downs, Inc. (NASDAQ:CHDN) is the most popular stock in this table. On the other hand, Cantel Medical Corp. (NYSE:CMN) is the least popular one with only 6 bullish hedge fund positions. Harbinger Group Inc (NYSE:HRG) 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, Churchill Downs, Inc. (NASDAQ:CHDN) might be a better candidate to consider a long position.
