Cree, Inc. (CREE): Are Hedge Funds Right About This Stock?

Judging by the fact that Cree, Inc. (NASDAQ:CREE) has witnessed a declination in interest from hedge fund managers, logic holds that there is a sect of funds that elected to cut their full holdings in the third quarter. At the top of the heap, Josh Resnick’s Jericho Capital Asset Management said goodbye to the largest stake of all the hedgies followed by Insider Monkey, valued at an estimated $16.2 million in stock, and Mike Masters’s Masters Capital Management was right behind this move, as the fund dropped about $10.4 million worth of shares. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Cree, Inc. (NASDAQ:CREE). We will take a look at Univar Inc (NYSE:UNVR), Healthcare Realty Trust Inc (NYSE:HR), ACI Worldwide Inc (NASDAQ:ACIW), and EnerSys (NYSE:ENS). All of these stocks’ market caps resemble CREE’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $108 million, higher than the $72 million in CREE’s case. ACI Worldwide Inc (NASDAQ:ACIW) is the most popular stock in this table. On the other hand Healthcare Realty Trust Inc (NYSE:HR) is the least popular one with only 10 bullish hedge fund positions. Cree, Inc. (NASDAQ:CREE) 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 ACIW might be a better candidate to consider a long position.