Hedge Funds Are Dumping The Advisory Board Company (ABCO)

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Because The Advisory Board Company (NASDAQ:ABCO) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there was a specific group of hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that John Croghan and Richard Fradin’s Rail-Splitter Capital Management cashed in the biggest position of the 700 funds tracked by Insider Monkey, comprising an estimated $4.2 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund cut about $2.1 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to The Advisory Board Company (NASDAQ:ABCO). These stocks are Main Street Capital Corporation (NYSE:MAIN), GATX Corporation (NYSE:GATX), 2U Inc (NASDAQ:TWOU), and NovaGold Resources Inc. (USA) (NYSEAMEX:NG). This group of stocks’ market caps are closest to ABCO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MAIN 8 14735 2
GATX 11 174818 -1
TWOU 15 70739 3
NG 22 299962 2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $128 million in ABCO’s case. NovaGold Resources Inc. (USA) (NYSEAMEX:NG) is the most popular stock in this table. On the other hand Main Street Capital Corporation (NYSE:MAIN) is the least popular one with only 8 bullish hedge fund positions. The Advisory Board Company (NASDAQ:ABCO) 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 NG might be a better candidate to consider taking a long position in.

Disclosure: none.

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