Hedge Funds Are Still Selling Off Aerojet Rocketdyne Holdings, Inc. (AJRD)

Since Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of hedge funds that elected to cut their entire stakes by the end of the third quarter. Interestingly, Jacob Gottlieb’s Visium Asset Management got rid of the largest investment of all the hedgies tracked by Insider Monkey, worth about $6.9 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also sold off its stock, about $2.1 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) but similarly valued. We will take a look at Amerisafe, Inc. (NASDAQ:AMSF), American Equity Investment Life Holding (NYSE:AEL), Alliance Resource Partners, L.P. (NASDAQ:ARLP), and AlarmCom Hldg Inc (NASDAQ:ALRM). All of these stocks’ market caps match AJRD’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was $272 million in AJRD’s case. American Equity Investment Life Holding (NYSE:AEL) is the most popular stock in this table. On the other hand Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have a lot more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio. However, the still-falling hedge fund ownership is cause for concern.

Disclosure: None