Cherokee Inc (CHKE): Are Hedge Funds Right About This Stock?

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Because Cherokee Inc. (NASDAQ:CHKE) has registered no change in sentiment from the smart money, we must check whether there were any hedgies that sold off their positions entirely last quarter. It’s worth mentioning that Benjamin A. Smith’s Laurion Capital Management dropped the biggest stake of the 700 funds tracked by Insider Monkey, valued at about $0.3 million in stock. Mark N. Diker’s fund, Diker Management, also said goodbye to its stock, about $0.2 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cherokee Inc. (NASDAQ:CHKE) but similarly valued. We will take a look at Fate Therapeutics Inc (NASDAQ:FATE), PC Tel Inc (NASDAQ:PCTI), Tremor Video Inc (NYSE:TRMR), and S&W Seed Company (NASDAQ:SANW). This group of stocks’ market values match CHKE’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FATE 5 15736 2
PCTI 4 24675 0
TRMR 3 5136 -2
SANW 7 29130 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 $19 million. That figure was $36 million in CHKE’s case. S&W Seed Company (NASDAQ:SANW) is the most popular stock in this table. On the other hand Tremor Video Inc (NYSE:TRMR) is the least popular one with only 3 bullish hedge fund positions. Cherokee Inc. (NASDAQ:CHKE) 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 SANW might be a better candidate to consider taking a long position in.

Disclosure: None


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