Declining Smart Money Interest in Ingevity Corp (NGVT) Following Strong IPO

Judging by the fact that Ingevity Corp (NYSE:NGVT) has weathered falling interest from hedge fund managers, we can see that there was a specific group of funds who sold off their positions entirely last quarter. At the top of the heap, Noah Levy and Eugene Dozortsev’s Newtyn Management dropped the biggest stake of all the investors monitored by Insider Monkey, comprising about $35.9 million in stock. Howard Marks’ fund, Oaktree Capital Management, also dropped its stock, about $8.9 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Ingevity Corp (NYSE:NGVT) but similarly valued. These stocks are DoubleLine Income Solutions Fund(NYSE:DSL), Office Depot Inc (NYSE:ODP), WebMD Health Corp. (NASDAQ:WBMD), and On Assignment, Inc. (NYSE:ASGN). This group of stocks’ market values match NGVT’s market value.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $228 million. That figure was $219 million in NGVT’s case. Office Depot Inc (NYSE:ODP) is the most popular stock in this table. On the other hand DoubleLine Income Solutions Fund(NYSE:DSL) is the least popular one with only 4 bullish hedge fund positions. Ingevity Corp(NYSE:NGVT) 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 ODP might be a better candidate to consider taking a long position in.

Disclosure: None