Hedge Funds Are Dumping MicroStrategy Incorporated (MSTR)

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Due to the fact that MicroStrategy Incorporated (NASDAQ:MSTR) has faced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedgies who sold off their positions entirely in the third quarter. Intriguingly, Aaron Cowen’s Suvretta Capital Management cut the largest investment of the “upper crust” of funds tracked by Insider Monkey, valued at an estimated $25.8 million in stock. Brian Taylor’s fund, Pine River Capital Management, also dumped its stock, about $3.8 million worth. These moves are interesting, as total hedge fund interest was cut by 1 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to MicroStrategy Incorporated (NASDAQ:MSTR). These stocks are Wolverine World Wide, Inc. (NYSE:WWW), WisdomTree Investments, Inc. (NASDAQ:WETF), PNM Resources, Inc. (NYSE:PNM), and Sothebys (NYSE:BID). This group of stocks’ market values resemble MSTR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WWW 15 134486 2
WETF 14 60564 -3
PNM 13 200593 -4
BID 31 899299 4

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $324 million. That figure was $525 million in MSTR’s case. Sothebys (NYSE:BID) is the most popular stock in this table. On the other hand PNM Resources, Inc. (NYSE:PNM) is the least popular one with only 13 bullish hedge fund positions. MicroStrategy Incorporated (NASDAQ:MSTR) 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 BID might be a better candidate to consider a long position.

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