Due to the fact that Christopher & Banks Corporation (NYSE:CBK) has faced a falling interest from the smart money, logic holds that there lies a certain “tier” of money managers that slashed their entire stakes in the third quarter. Interestingly, Chuck Royce’s Royce & Associates dumped the biggest position of all the hedgies tracked by Insider Monkey, valued at an estimated $1.4 million in stock. Mark N. Diker’s fund, Diker Management, also said goodbye to its stock, about $0.6 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 5 funds in the third quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Christopher & Banks Corporation (NYSE:CBK) but similarly valued. These stocks are Cinedigm Corp (NASDAQ:CIDM), Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK), Smith Micro Software, Inc. (NASDAQ:SMSI), and the First Marblehead Corporation (NYSE:FMD). This group of stocks’ market valuations match Christopher & Banks Corporation (NYSE:CBK)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CIDM | 8 | 2168 | -4 |
| NAK | 4 | 2352 | 0 |
| SMSI | 5 | 5195 | 1 |
| FMD | 4 | 4393 | -2 |
As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $3 million in Christopher & Banks Corporation (NYSE:CBK)’s case. Cinedigm Corp (NASDAQ:CIDM) is the most popular stock in this table. On the other hand, Northern Dynasty Minerals Ltd. (USA) (NYSEMKT:NAK) is the least popular one with only 4 bullish hedge fund positions. Christopher & Banks Corporation (NYSE:CBK) 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, Cinedigm Corp (NASDAQ:CIDM) might be a better candidate to consider a long position.
