Hedge Funds Are Dumping A M Castle and Co (CAS)

Judging by the fact that A M Castle and Co (NYSE:CAS) has experienced a bearish sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of hedge funds that slashed their entire stakes heading into Q4. Intriguingly, Joe Huber’s Huber Capital Management dropped the largest stake of all the hedgies tracked by Insider Monkey, comprising close to $3.5 million in stock. Vadim Perelman’s fund, Baker Street Capital, also cut its stock, about $1 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 6 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as A M Castle and Co (NYSE:CAS) but similarly valued. These stocks are BIOLASE Inc (NASDAQ:BIOL), FX Energy, Inc. (NASDAQ:FXEN), Golden Star Resources Ltd. (USA) (NYSEMKT:GSS), and Marrone Bio Innovations Inc (NASDAQ:MBII). This group of stocks’ market caps matches A M Castle and Co (NYSE:CAS)’s market cap.

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $18 million in A M Castle and Co (NYSE:CAS)’s case. BIOLASE Inc (NASDAQ:BIOL) is the most popular stock in this table. On the other hand, Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) is the least popular one with only 4 bullish hedge fund positions. A M Castle and Co (NYSE:CAS) 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, BIOLASE Inc (NASDAQ:BIOL) might be a better candidate to consider a long position.