Do Hedge Funds Love Points International Ltd (USA) (PCOM)?

Judging by the fact that Points International Ltd (USA) (NASDAQ:PCOM) has faced bearish sentiment from hedge fund managers, logic holds that there was a specific group of funds that elected to cut their positions entirely last quarter. Interestingly, Ken Griffin’s Citadel Investment Group dumped the largest stake of the 700 funds tracked by Insider Monkey, valued at about $0.1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $0.1 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Points International Ltd (USA) (NASDAQ:PCOM) but similarly valued. We will take a look at Synergetics USA Inc (NASDAQ:SURG), IMPAC Mortgage Holdings, Inc (NYSEMKT:IMH), KCAP Financial Inc (NASDAQ:KCAP), and Veritex Holdings Inc (NASDAQ:VBTX). All of these stocks’ market caps resemble PCOM’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $22 million in PCOM’s case. Synergetics USA Inc (NASDAQ:SURG) is the most popular stock in this table. On the other hand IMPAC Mortgage Holdings, Inc (NYSEMKT:IMH) is the least popular one with only 5 bullish hedge fund positions. Points International Ltd (USA) (NASDAQ:PCOM) 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 SURG might be a better candidate to consider a long position.