Hedge Funds Are Dumping Great Ajax Corp (AJX)

Seeing as Great Ajax Corp (NYSE:AJX) has witnessed a bearish sentiment from the aggregate hedge fund industry, logic holds that there was a specific group of fund managers that decided to sell off their full holdings by the end of the third quarter. It’s worth mentioning that Charles Clough’s Clough Capital Partners sold off the biggest stake of the “upper crust” of funds tracked by Insider Monkey, valued at close to $4.1 million in stock, and Carl Tiedemann and Michael Tiedemann’s TIG Advisors was right behind this move, as the fund cut about $0.8 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 1 fund by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Great Ajax Corp (NYSE:AJX) but similarly valued. We will take a look at Marlin Business Services Corp. (NASDAQ:MRLN), Global Sources Ltd. (Bermuda) (NASDAQ:GSOL), Cynapsus Therapeutics Inc (NASDAQ:CYNA), and Senomyx Inc. (NASDAQ:SNMX). This group of stocks’ market valuations resemble Great Ajax Corp (NYSE:AJX)’s market valuation.

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $38 million. That figure was $24 million in Great Ajax Corp (NYSE:AJX)’s case. Cynapsus Therapeutics Inc (NASDAQ:CYNA) is the most popular stock in this table. On the other hand, Global Sources Ltd. (Bermuda) (NASDAQ:GSOL) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Great Ajax Corp (NYSE:AJX) is even less popular than Global Sources Ltd. (Bermuda) (NASDAQ:GSOL). 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.