Hedge Funds Are Dumping Resource Capital Corp. (RSO)

Because Resource Capital Corp. (NYSE:RSO) has experienced falling interest from hedge fund managers, we can see that there exists a select few funds that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Israel Englander’s Millennium Management cut the largest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $0.4 million in stock. John Fichthorn’s fund, Dialectic Capital Management, also dropped its stock, about $0.2 million worth. These transactions are interesting, as total hedge fund interest was cut by 4 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Resource Capital Corp. (NYSE:RSO) but similarly valued. We will take a look at Univest Corp. of PA (NASDAQ:UVSP), Cliffs Natural Resources Inc (NYSE:CLF), A10 Networks Inc (NYSE:ATEN), and Theravance Biopharma Inc (NASDAQ:TBPH). This group of stocks’ market valuations match Resource Capital Corp.’s market valuation.

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $8 million in Resource Capital Corp.’s case. Cliffs Natural Resources Inc (NYSE:CLF) is the most popular stock in this table. On the other hand Univest Corp. of PA (NASDAQ:UVSP) is the least popular one with only 5 bullish hedge fund positions. Resource Capital Corp. (NYSE:RSO) is not the least popular stock in this group but hedge fund interest is still below average, as is capital invested by smart money in the stock. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Cliffs Natural Resources might be a better candidate to consider a long position in.