Hedge Funds Aren’t Crazy About Kadant Inc. (KAI) Anymore

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Interestingly, Israel Englander’s Millennium Management dropped the largest stake of all the hedgies studied by Insider Monkey, comprising an estimated $0.8 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also said goodbye to its stock, about $0.3 million worth.

Let’s also examine hedge fund activity in other stocks similar to Kadant Inc. (NYSE:KAI). We will take a look at CytomX Therapeutics Inc (NASDAQ:CTMX), Loxo Oncology Inc (NASDAQ:LOXO), Modine Manufacturing Co. (NYSE:MOD), and Amarin Corporation plc (ADR) (NASDAQ:AMRN). This group of stocks’ market caps are closest to KAI’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $134 million. That figure was $57 million in KAI’s case. Amarin Corporation plc (ADR) (NASDAQ:AMRN) is the most popular stock in this table. On the other hand CytomX Therapeutics Inc (NASDAQ:CTMX) is the least popular one with only 7 bullish hedge fund positions. Kadant Inc. (NYSE:KAI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AMRN might be a better candidate to consider taking a long position in.

Disclosure: None