Accuride Corporation (ACW): Are Hedge Funds Right About This Stock?

Due to the fact that Accuride Corporation (NYSE:ACW) has faced falling interest from hedge fund managers, logic holds that there is a sect of fund managers that decided to sell off their entire stakes last quarter. At the top of the heap, Roger Keith Long’s Otter Creek Management cut the largest position of the 700 funds monitored by Insider Monkey, comprising an estimated $0.6 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also dropped its position, about $0.1 million worth of stock. These moves are interesting, as aggregate hedge fund interest fell by 1 fund last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Accuride Corporation (NYSE:ACW). These stocks are Lantheus Holdings Inc (NASDAQ:LNTH), Abeona Therapeutics Inc (NASDAQ:ABEO), Fenix Parts Inc (NASDAQ:FENX), and Planar Systems, Inc. (NASDAQ:PLNR). This group of stocks’ market caps are similar to ACW’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $31 million in ACW’s case, which we consider as a good signal. Planar Systems, Inc. (NASDAQ:PLNR) is the most popular stock in this table. On the other hand Lantheus Holdings Inc (NASDAQ:LNTH) is the laggard with only 4 bullish hedge fund positions. Summing up, Accuride Corporation (NYSE:ACW) is clearly the star of this group. 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.