Golden Ocean Group Ltd (GOGL): Hedge Fund Sentiment Unchanged

Seeing as Golden Ocean Group Ltd (NASDAQ:GOGL) has experienced a declining sentiment from hedge fund managers, logic holds that there lies a certain “tier” of hedgies who were dropping their positions entirely in the third quarter. At the top of the heap, Robert Henry Lynch’s Aristeia Capital said goodbye to the biggest stake of all the hedgies watched by Insider Monkey, totaling about $0.9 million in stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, also cut its stock, about $0.1 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Golden Ocean Group Ltd (NASDAQ:GOGL) but similarly valued. We will take a look at La Jolla Pharmaceutical Company (NASDAQ:LJPC), C&J Energy Services Inc (NYSE:CJES), Century Communities, Inc (NYSE:CCS), and Patriot National Inc (NYSE:PN). This group of stocks’ market values match Golden Ocean Group Ltd (NASDAQ:GOGL)’s market value.

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 $91 million. That figure was $7 million in Golden Ocean Group Ltd (NASDAQ:GOGL)’s case. C&J Energy Services Inc (NYSE:CJES) is the most popular stock in this table. On the other hand, Patriot National Inc (NYSE:PN) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Golden Ocean Group Ltd (NASDAQ:GOGL) is even less popular than Patriot National Inc (NYSE:PN). 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.