Hedge Funds Are Dumping Revlon Inc (REV)

Due to the fact that Revlon Inc (NYSE:REV) has witnessed a falling interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds that elected to cut their entire stakes by the end of the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management cut the biggest stake of all the hedgies watched by Insider Monkey, worth about $2 million in stock, and D E Shaw was right behind this move, as the fund dropped about $0.2 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 1 fund by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Revlon Inc (NYSE:REV) but similarly valued. We will take a look at American States Water Co (NYSE:AWR), Greif, Inc. (NYSE:GEF), ABM Industries, Inc. (NYSE:ABM), and China Lodging Group, Ltd (ADR) (NASDAQ:HTHT). This group of stocks’ market caps are closest to Revlon Inc (NYSE:REV)’s market cap.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $13 million in Revlon Inc (NYSE:REV)’s case. Greif, Inc. (NYSE:GEF) is the most popular stock in this table. On the other hand, American States Water Co (NYSE:AWR) is the least popular one with only 5 bullish hedge fund positions. Revlon Inc (NYSE:REV) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Greif, Inc. (NYSE:GEF) might be a better candidate to consider a long position.