Hedge Funds Are Dumping Arc Group World Wide Inc (ARCW)

Due to the fact that Arc Group World Wide Inc (NASDAQ:ARCW) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedgies who were dropping their positions entirely in the third quarter. It’s worth mentioning that Joseph A. Jolson’s Harvest Capital Strategies said goodbye to the biggest investment of all the hedgies watched by Insider Monkey, valued at close to $3 million in stock. Mark Coe’s fund, Coe Capital Management, also cut its stock, about $0.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Arc Group World Wide Inc (NASDAQ:ARCW) but similarly valued. We will take a look at CAS Medical Systems Inc (NASDAQ:CASM), Goodrich Petroleum Corporation (NYSE:GDP), Discovery Laboratories, Inc. (NASDAQ:DSCO), and Alphatec Holdings Inc (NASDAQ:ATEC). This group of stocks’ market caps are closest to ARCW’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $2 million in ARCW’s case. Goodrich Petroleum Corporation (NYSE:GDP) is the most popular stock in this table. On the other hand Alphatec Holdings Inc (NASDAQ:ATEC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Arc Group World Wide Inc (NASDAQ:ARCW) is even less popular than ATEC. 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.