Hedge Funds Are Dumping Lions Gate Entertainment Corp. (USA) (LGF)

Since Lions Gate Entertainment Corp. (USA) (NYSE:LGF) has experienced a declination in interest from the smart money, it’s safe to say that there is a sect of hedge funds that slashed their positions entirely in the third quarter. Intriguingly, Daniel Benton’s Andor Capital Management said goodbye to the largest stake of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $46.3 million in stock. Jim Simons’s fund, Renaissance Technologies, also cut its investment in the company, about $28.8 million worth of shares. These moves are important to note, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Lions Gate Entertainment Corp. (USA) (NYSE:LGF) but similarly valued. These stocks are Lazard Ltd (NYSE:LAZ), OGE Energy Corp. (NYSE:OGE), 58.com Inc (ADR) (NYSE:WUBA), and Spectrum Brands Holdings, Inc. (NYSE:SPB). This group of stocks’ market caps are similar to LGF’s market cap.

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $461 million. That figure was $2.52 billion in LGF’s case. 58.com Inc (ADR) (NYSE:WUBA) is the most popular stock in this table. On the other hand Lazard Ltd (NYSE:LAZ) and OGE Energy Corp. (NYSE:OGE) are the least popular ones with only 22 bullish hedge fund positions. With 33 long positions, Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is clearly the star of this group. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.