Hedge Funds Are Dumping Tilly’s Inc (TLYS)

Since Tilly’s Inc (NYSE:TLYS) has experienced a bearish sentiment from the smart money, logic holds that there was a specific group of hedgies who sold off their positions entirely in the third quarter. Intriguingly, Brian C. Freckmann’s Lyon Street Capital cut the largest investment of all the hedgies monitored by Insider Monkey, totaling an estimated $1.5 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also dumped its stock, about $0.3 million worth of shares. These moves are important to note, as total hedge fund interest fell by 1 fund in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Tilly’s Inc (NYSE:TLYS) but similarly valued. These stocks are Capitala Finance Corp (NASDAQ:CPTA), Kopin Corporation (NASDAQ:KOPN), Solazyme Inc (NASDAQ:SZYM), and Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN). This group of stocks’ market valuations are similar to Tilly’s Inc (NYSE:TLYS)’s market valuation.

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $7 million in Tilly’s Inc (NYSE:TLYS)’s case. Kopin Corporation (NASDAQ:KOPN) is the most popular stock in this table. On the other hand, Capitala Finance Corp (NASDAQ:CPTA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Tilly’s Inc (NYSE:TLYS) is more popular among hedge funds. 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.