Hedge Funds Are Selling Resolute Forest Products Inc (RFP)

Judging by the fact that Resolute Forest Products Inc (NYSE:RFP) has witnessed falling interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies who were dropping their entire stakes in the third quarter. It’s worth mentioning that Jon Bauer’s Contrarian Capital dumped the largest position of the “upper crust” of funds followed by Insider Monkey, totaling about $8.7 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund sold off about $0.6 million worth of shares. These transactions are important to note, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Resolute Forest Products Inc (NYSE:RFP) but similarly valued. These stocks are EZchip Semiconductor Ltd. (NASDAQ:EZCH), Crossamerica Partners LP (NYSE:CAPL), City Holding Company (NASDAQ:CHCO), and Biglari Holdings Inc (NYSE:BH). This group of stocks’ market caps are similar to RFP’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $368 million in RFP’s case. EZchip Semiconductor Ltd. (NASDAQ:EZCH) is the most popular stock in this table, while Crossamerica Partners LP (NYSE:CAPL) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Resolute Forest Products Inc (NYSE:RFP) is more popular among hedge funds and has attracted a lot more of hedgies’ money. 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.