Because Masonite International Corp (NYSE:DOOR) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Dinakar Singh’s TPG-AXON Management LP dumped the biggest position of all the hedgies watched by Insider Monkey, totaling an estimated $24.4 million in stock, and Principal Global Investors’s Columbus Circle Investors was right behind this move, as the fund dropped about $10.8 million worth of shares. These moves are interesting, as total hedge fund interest fell by 6 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Masonite International Corp (NYSE:DOOR) but similarly valued. These stocks are Noble Corporation (NYSE:NE), MicroStrategy Incorporated (NASDAQ:MSTR), Rexnord Corp (NYSE:RXN), and Watts Water Technologies Inc (NYSE:WTS). This group of stocks’ market valuations are similar to DOOR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| NE | 34 | 277566 | 1 |
| MSTR | 23 | 306704 | -3 |
| RXN | 16 | 191629 | -3 |
| WTS | 11 | 433841 | -2 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was $340 million in DOOR’s case. Noble Corporation (NYSE:NE) is the most popular stock in this table. On the other hand Watts Water Technologies Inc (NYSE:WTS) is the least popular one with only 11 bullish hedge fund positions. Masonite International Corp (NYSE:DOOR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NE might be a better candidate to consider a long position in.
Disclosure: None
