Hedge Funds Aren’t Crazy About LivePerson, Inc. (LPSN) Anymore

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Since LivePerson, Inc. (NASDAQ:LPSN) has sustained falling interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers that elected to cut their positions entirely in the third quarter. At the top of the heap, Michael Murphy and Daniel Donoghue’s Discovery Group cut the biggest investment of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $1.8 million in stock, and Youlia Miteva’s Proxima Capital Management was right behind this move, as the fund said goodbye to about $1.8 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as LivePerson, Inc. (NASDAQ:LPSN) but similarly valued. We will take a look at Oriental Financial Group Inc. (NYSE:OFG), On Deck Capital Inc (NYSE:ONDK), Unisys Corporation (NYSE:UIS), and GP Strategies Corporation (NYSE:GPX). This group of stocks’ market valuations resemble LPSN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OFG 11 26041 3
ONDK 11 72897 0
UIS 20 71205 2
GPX 13 137563 3

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $69 million in LPSN’s case. Unisys Corporation (NYSE:UIS) is the most popular stock in this table. On the other hand Oriental Financial Group Inc. (NYSE:OFG) is the least popular one with only 11 bullish hedge fund positions. LivePerson, Inc. (NASDAQ:LPSN) 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 UIS might be a better candidate to consider taking a long position in.

Disclosure: none.

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