Hedge Funds Are Dumping AlarmCom Hldg Inc (ALRM)

Since AlarmCom Hldg Inc (NASDAQ:ALRM) has faced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that decided to sell off their entire stakes last quarter. Interestingly, Glen Kacher’s Light Street Capital sold off the largest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $3.8 million in stock. Curtis Macnguyen’s fund, Ivory Capital (Investment Mgmt), also said goodbye to its stock, about $2.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 6 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as AlarmCom Hldg Inc (NASDAQ:ALRM) but similarly valued. We will take a look at Esperion Therapeutics (NASDAQ:ESPR), Amphastar Pharmaceuticals Inc (NASDAQ:AMPH), TG Therapeutics Inc (NASDAQ:TGTX), and National Interstate Corporation (NASDAQ:NATL). All of these stocks’ market caps resemble ALRM’s market cap.

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 $82 million. That figure was just $6 million in ALRM’s case. Esperion Therapeutics (NASDAQ:ESPR) is the most popular stock in this table. On the other hand National Interstate Corporation (NASDAQ:NATL) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks AlarmCom Hldg Inc (NASDAQ:ALRM) enjoys the same level of popularity as NATL. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned 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.