Do Hedge Funds Love MINDBODY Inc (MB)?

Seeing as MINDBODY Inc (NASDAQ:MB) has experienced a falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers who were dropping their entire stakes heading into Q4. Intriguingly, Nick Niell’s Arrowgrass Capital Partners cut the largest position of the 700 funds monitored by Insider Monkey, worth about $5.5 million in stock, and Brian Taylor’s Pine River Capital Management was right behind this move, as the fund sold off about $2.3 million worth of shares. These moves are interesting, as total hedge fund interest dropped by 7 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to MINDBODY Inc (NASDAQ:MB). We will take a look at Performance Sports Group Ltd (NYSE:PSG), Patrick Industries, Inc. (NASDAQ:PATK), Pier 1 Imports, Inc. (NYSE:PIR), and FARO Technologies, Inc. (NASDAQ:FARO). This group of stocks’ market valuations are closest to MINDBODY Inc (NASDAQ:MB)’s market valuation.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $24 million in MINDBODY Inc (NASDAQ:MB)’s case. Pier 1 Imports, Inc. (NYSE:PIR) is the most popular stock in this table. On the other hand, FARO Technologies, Inc. (NASDAQ:FARO) is the least popular one with only 7 bullish hedge fund positions. MINDBODY Inc (NASDAQ:MB) 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, Pier 1 Imports, Inc. (NYSE:PIR) might be a better candidate to consider a long position.