Is Lydall, Inc. (LDL) Going to Burn These Hedge Funds?

Because Lydall, Inc. (NYSE:LDL) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there were a few money managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Israel Englander’s Millennium Management sold off the biggest stake of the 700 funds tracked by Insider Monkey, comprising close to $0.9 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund said goodbye to its call options holding.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Lydall, Inc. (NYSE:LDL) but similarly valued. These stocks are HealthStream, Inc. (NASDAQ:HSTM), Incontact Inc (NASDAQ:SAAS), Web.com Group Inc (NASDAQ:WEB), and GTT Communications Inc (NYSE:GTT). This group of stocks’ market caps resemble LDL’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $67 million in LDL’s case. Web.com Group Inc (NASDAQ:WEB) is the most popular stock in this table. On the other hand HealthStream, Inc. (NASDAQ:HSTM) is the least popular one with only 9 bullish hedge fund positions. Lydall, Inc. (NYSE:LDL) 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 WEB might be a better candidate to consider taking a long position in.

Disclosure: none.