Hedge Funds Are Dumping Charter Financial Corp (CHFN)

Page 2 of 2

Seeing as Charter Financial Corp (NASDAQ:CHFN) has gone through a decline in interest from the entirety of the hedge funds we track, we can see that there exists a select few funds that elected to cut their positions entirely heading into Q4. Intriguingly, Peter Muller’s PDT Partners cut the largest investment of all the hedgies watched by Insider Monkey, worth an estimated $0.5 million in stock, and Prasad Phatak and Chris Koranda’s Tappan Street Partners was right behind this move, as the fund dumped about $0.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Charter Financial Corp (NASDAQ:CHFN) but similarly valued. These stocks are Transenterix Inc (NYSEMKT:TRXC), Uniqure NV (NASDAQ:QURE), Kirkland’s, Inc. (NASDAQ:KIRK), and HC2 Holdings Inc (NYSEMKT:HCHC). This group of stocks’ market values are closest to CHFN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRXC 5 25981 -1
QURE 12 24678 -3
KIRK 11 55173 -1
HCHC 10 19674 3

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 $31 million. That figure was $29 million in CHFN’s case. Uniqure NV (NASDAQ:QURE) is the most popular stock in this table. On the other hand Transenterix Inc (NYSEMKT:TRXC) is the least popular one with only 5 bullish hedge fund positions. Charter Financial Corp (NASDAQ:CHFN) 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 QURE might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2