Hedge Funds Aren’t Crazy About National General Holdings Corp (NGHC) Anymore

Because National General Holdings Corp (NASDAQ:NGHC) has weathered bearish sentiment from the aggregate hedge fund industry, we can see that there was a specific group of funds that slashed their positions entirely in the third quarter. Intriguingly, Michael Blitzer’s Kingstown Capital Management sold off the biggest stake of all the investors studied by Insider Monkey, comprising close to $4.8 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also cut its stock, about $2.9 million worth.

Let’s go over hedge fund activity in other stocks similar to National General Holdings Corp (NASDAQ:NGHC). These stocks are South Jersey Industries Inc (NYSE:SJI), Chemed Corporation (NYSE:CHE), Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), and WebMD Health Corp. (NASDAQ:WBMD). This group of stocks’ market valuations resemble NGHC’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $200 million. That figure was $116 million in NGHC’s case. WebMD Health Corp. (NASDAQ:WBMD) is the most popular stock in this table. On the other hand South Jersey Industries Inc (NYSE:SJI) is the least popular one with only 8 bullish hedge fund positions. National General Holdings Corp (NASDAQ:NGHC) 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 WBMD might be a better candidate to consider taking a long position in.

Disclosure: None