Do Hedge Funds Love Dorman Products Inc. (DORM)?

Page 2 of 2

Judging by the fact that Dorman Products Inc. (NASDAQ:DORM) has witnessed falling interest from the smart money, logic holds that there exists a select few hedge funds who were dropping their positions entirely last quarter. Intriguingly, Israel Englander’s Millennium Management dumped the biggest position of all the hedgies tracked by Insider Monkey, valued at about $1.9 million in call options.. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its call options., about $0.3 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Dorman Products Inc. (NASDAQ:DORM) but similarly valued. We will take a look at The Corporate Executive Board Company (NYSE:CEB), NorthStar Asset Management Group Inc (NYSE:NSAM), Synaptics, Incorporated (NASDAQ:SYNA), and Minerals Technologies Inc (NYSE:MTX). This group of stocks’ market caps are closest to DORM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CEB 12 66299 1
NSAM 47 1035762 -1
SYNA 21 206919 -3
MTX 17 166520 1

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $369 million. That figure was just $94 million in DORM’s case. NorthStar Asset Management Group Inc (NYSE:NSAM) is the most popular stock in this table, with 47 funds holding shares. On the other hand The Corporate Executive Board Company (NYSE:CEB) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Dorman Products Inc. (NASDAQ:DORM) is even less popular than CEB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Page 2 of 2