Hedge Funds Are Dumping Zhaopin Ltd (ADR) (ZPIN)

Due to the fact that Zhaopin Ltd (ADR) (NYSE:ZPIN) has faced a bearish sentiment from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of fund managers that decided to sell off their positions entirely last quarter. At the top of the heap, Jeffrey Altman’s Owl Creek Asset Management cut the largest stake of the “upper crust” of funds watched by Insider Monkey, valued at close to $5.6 million in stock, and Eric Semler’s TCS Capital Management was right behind this move, as the fund dropped about $2.6 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 5 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Zhaopin Ltd (ADR) (NYSE:ZPIN) but similarly valued. We will take a look at CorVel Corporation (NASDAQ:CRVL), Interactive Intelligence Group Inc (NASDAQ:ININ), Sandy Spring Bancorp Inc. (NASDAQ:SASR), and Premiere Global Services, Inc. (NYSE:PGI). This group of stocks’ market valuations is similar to Zhaopin Ltd (ADR) (NYSE:ZPIN)’s market valuation.

As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $5 million in Zhaopin Ltd (ADR) (NYSE:ZPIN)’s case. Premiere Global Services, Inc. (NYSE:PGI) is the most popular stock in this table. On the other hand, Sandy Spring Bancorp Inc. (NASDAQ:SASR) is the least popular one with only 4 bullish hedge fund positions. Zhaopin Ltd (ADR) (NYSE:ZPIN) 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, Premiere Global Services, Inc. (NYSE:PGI) might be a better candidate to consider a long position.