Hedge Fund Sentiment Is Stagnant On Gamco Investors Inc (GBL)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Highbridge Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Citadel Investment Group).

Let’s now take a look at hedge fund activity in other stocks similar to Gamco Investors Inc (NYSE:GBL). We will take a look at Crossamerica Partners LP (NYSE:CAPL), Cardinal Financial Corporation (NASDAQ:CFNL), TriMas Corp (NASDAQ:TRS), and Transocean Partners LLC (NYSE:RIGP). This group of stocks’ market values are closest to GBL’s market value.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $60 million. That figure was $14 million in GBL’s case. TriMas Corp (NASDAQ:TRS) is the most popular stock in this table. On the other hand Crossamerica Partners LP (NYSE:CAPL) is the least popular one with only 5 bullish hedge fund positions. Gamco Investors Inc (NYSE:GBL) 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 TRS might be a better candidate to consider taking a long position in.

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Disclosure: None