Are Investors Losing Faith in NVR, Inc. (NVR)?

Due to the fact that NVR, Inc. (NYSE:NVR) has witnessed bearish sentiment from the smart money, it’s easy to see that there were a few hedgies that decided to sell off their full holdings last quarter. It’s worth mentioning that Clint Murray’s Lodge Hill Capital sold off the biggest position of the 700 funds watched by Insider Monkey, totaling close to $18.6 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also said goodbye to its stock, about $12 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to NVR, Inc. (NYSE:NVR). We will take a look at TECO Energy, Inc. (NYSE:TE), Qihoo 360 Technology Co Ltd (NYSE:QIHU), Mid America Apartment Communities Inc (NYSE:MAA), and Rite Aid Corporation (NYSE:RAD). This group of stocks’ market values match NVR’s market value.

As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $428 million. That figure was $791 million in NVR’s case. Rite Aid Corporation (NYSE:RAD) is the most popular stock in this table. On the other hand Mid America Apartment Communities Inc (NYSE:MAA) is the least popular one with only 18 bullish hedge fund positions. NVR, Inc. (NYSE:NVR) 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 RAD might be a better candidate to consider a long position.