Inogen Inc (INGN): Why is Smart Money Unloading This Stock?

Judging by the fact that Inogen Inc (NASDAQ:INGN) has faced falling interest from hedge fund managers, logic holds that there exists a select few money managers that slashed their entire stakes in the third quarter. At the top of the heap, Brian Ashford-Russell and Tim Woolley’s Polar Capital cashed in the largest investment of the 700 funds followed by Insider Monkey, totaling about $9.7 million in stock. David Costen Haley’s fund, HBK Investments, also dumped its stock, about $1.3 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Inogen Inc (NASDAQ:INGN) but similarly valued. We will take a look at Teekay LNG Partners L.P. (NYSE:TGP), Golar LNG Partners LP (NASDAQ:GMLP), Air Methods Corp (NASDAQ:AIRM), and SeaWorld Entertainment Inc (NYSE:SEAS). This group of stocks’ market valuations match INGN’s market valuation.

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 $73 million. That figure was $64 million in INGN’s case. Air Methods Corp (NASDAQ:AIRM) is the most popular stock in this table. On the other hand Teekay LNG Partners L.P. (NYSE:TGP) is the least popular one with only 6 bullish hedge fund positions. Inogen Inc (NASDAQ:INGN) 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 AIRM might be a better candidate to consider taking a long position in.

Disclosure: None