Hedge Funds Are Selling EZCORP Inc (EZPW)

Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of EZCORP Inc (NASDAQ:EZPW) based on that data.

EZCORP Inc (NASDAQ:EZPW) was in 17 hedge funds’ portfolios at the end of September. EZPW investors should pay attention to a decrease in support from the world’s most elite money managers recently. There were 21 hedge funds in our database with EZPW holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Flexion Therapeutics Inc (NASDAQ:FLXN), Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI), and Lionbridge Technologies, Inc. (NASDAQ:LIOX) to gather more data points.

In the 21st century investor’s toolkit there are plenty of indicators investors have at their disposal to value stocks. Some of the most useful indicators are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the elite fund managers can beat their index-focused peers by a very impressive margin (see the details here).

Now, let’s view the key action surrounding EZCORP Inc (NASDAQ:EZPW).

How have hedgies been trading EZCORP Inc (NASDAQ:EZPW)?

Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 19% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Huber Capital Management, managed by Joe Huber, holds the most valuable position in EZCORP Inc (NASDAQ:EZPW). The fund reportedly holds a $19.7 million stake in the company, comprising 0.7% of its 13F portfolio. The second largest stake is held by MSDC Management, led by Marc Lisker, Glenn Fuhrman and John Phelan, holding a $9.3 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish include Bryant Regan’s Lafitte Capital Management, Andy Redleaf’s Whitebox Advisors and Michael Pollack’s Destrier Capital.

Since EZCORP Inc (NASDAQ:EZPW) has witnessed a declination in interest from the smart money, it’s safe to say that there lies a certain “tier” of hedgies that elected to cut their positions entirely in the third quarter. Interestingly, Mike Vranos’s Ellington dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising about $0.6 million in stock, and Matthew Tewksbury’s Stevens Capital Management was right behind this move, as the fund said goodbye to about $0.3 million worth of shares. These transactions are important to note, as total hedge fund interest dropped by 4 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as EZCORP Inc (NASDAQ:EZPW) but similarly valued. We will take a look at Flexion Therapeutics Inc (NASDAQ:FLXN), Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI), Lionbridge Technologies, Inc. (NASDAQ:LIOX), and Sorrentto Therapeutics Inc (NASDAQ:SRNE). All of these stocks’ market caps are similar to EZPW’s market cap.

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 $47 million. Lionbridge Technologies, Inc. (NASDAQ:LIOX) is the most popular stock in this table, whereas Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks EZCORP Inc (NASDAQ:EZPW) is more popular among hedge funds and has attracted a larger amount of their money: $68 million at the end of the third quarter. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.