Hedge Funds Are Dumping Diana Shipping Inc. (DSX)

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Because Diana Shipping Inc. (NYSE:DSX) has experienced falling interest from the smart money, it’s safe to say that there was a specific group of hedge funds that decided to sell off their entire stakes heading into Q4. At the top of the heap, Manish Chopra’s Tiger Veda dropped the biggest investment of the 700 funds monitored by Insider Monkey, valued at an estimated $19.9 million in stock, and Howard Marks’s Oaktree Capital Management was right behind this move, as the fund dropped about $3.4 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 3 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Diana Shipping Inc. (NYSE:DSX). These stocks are Alamo Group, Inc. (NYSE:ALG), CoBiz Financial Inc (NASDAQ:COBZ), Frontline Ltd (NYSE:FRO), and The Marcus Corporation (NYSE:MCS). This group of stocks’ market values are closest to DSX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ALG 7 144749 -2
COBZ 6 9002 -1
FRO 14 15758 0
MCS 12 49694 1

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 $55 million. That figure was $48 million in DSX’s case. Frontline Ltd (NYSE:FRO) is the most popular stock in this table. On the other hand CoBiz Financial Inc (NASDAQ:COBZ) is the least popular one with only 6 bullish hedge fund positions. Diana Shipping Inc. (NYSE:DSX) 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 FRO might be a better candidate to consider a long position.

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