Do Hedge Funds Love American Equity Investment Life Holding (AEL)?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Intriguingly, Ike Kier and Ilya Zaides’s KG Funds Management sold off the biggest position of all the investors followed by Insider Monkey, comprising an estimated $4.9 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund cut about $3.6 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to American Equity Investment Life Holding (NYSE:AEL). These stocks are Alliance Resource Partners, L.P. (NASDAQ:ARLP), AlarmCom Hldg Inc (NASDAQ:ALRM), Asbury Automotive Group, Inc. (NYSE:ABG), and Calavo Growers, Inc. (NASDAQ:CVGW). This group of stocks’ market values resemble AEL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ARLP 7 56760 0
ALRM 8 61701 2
ABG 21 425623 1
CVGW 18 59180 5

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $151 million. That figure was $87 million in AEL’s case. Asbury Automotive Group, Inc. (NYSE:ABG) is the most popular stock in this table. On the other hand Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the least popular one with only 7 bullish hedge fund positions. American Equity Investment Life Holding (NYSE:AEL) 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 ABG might be a better candidate to consider taking a long position in.

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Disclosure: None




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