Hedge Funds Are Dumping Re/Max Holdings Inc (RMAX)

Seeing as Re/Max Holdings Inc (NYSE:RMAX) has experienced falling interest from the smart money, logic holds that there exists a select few funds that slashed their full holdings heading into Q4. Interestingly, Brett Barakett’s Tremblant Capital sold off the biggest stake of all the hedgies monitored by Insider Monkey, comprising an estimated $2.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $0.5 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 5 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Re/Max Holdings Inc (NYSE:RMAX) but similarly valued. We will take a look at Dorchester Minerals LP (NASDAQ:DMLP), CARBO Ceramics Inc. (NYSE:CRR), Stein Mart, Inc. (NASDAQ:SMRT), and Forestar Group Inc. (NYSE:FOR). This group of stocks’ market values are closest to RMAX’s market value.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was just $10 million in RMAX’s case. Stein Mart, Inc. (NASDAQ:SMRT) is the most popular stock in this table. On the other hand, Dorchester Minerals LP (NASDAQ:DMLP) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Re/Max Holdings Inc (NYSE:RMAX) is not very popular among hedge funds, since it also had just 5 funds holding its shares. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.