Hedge Fund Sentiment Is Stagnant On Zagg Inc (ZAGG)

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In addition, there lies a certain “tier” of money managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Chao Ku’s Nine Chapters Capital Management dumped the biggest position of all the hedgies watched by Insider Monkey, comprising about $0.9 million in stock, and Ken Gray and Steve Walsh’s Bryn Mawr Capital was right behind this move, as the fund cut about $0.1 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Zagg Inc (NASDAQ:ZAGG). We will take a look at Regional Management Corp (NYSE:RM), Rocket Fuel Inc (NASDAQ:FUEL), Heska Corp (NASDAQ:HSKA), and Neuberger Berman High Yield Strateges Fd (NYSEMKT:NHS). All of these stocks’ market caps are similar to ZAGG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RM 18 70063 1
FUEL 10 9885 1
HSKA 9 27219 1
NHS 5 21953 1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $32 million, compared to $21 million in ZAGG’s case. Regional Management Corp (NYSE:RM) is the most popular stock in this table. On the other hand Neuberger Berman High Yield Strateges Fd (NYSEMKT:NHS) is the least popular one with only 5 bullish hedge fund positions. Zagg Inc (NASDAQ:ZAGG) 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 RM might be a better candidate to consider a long position.

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