Hedge Funds Grow Bearish on Mercer International Inc. (MERC) in Q3

Due to the fact that Mercer International Inc. (NASDAQ:MERC) has experienced a declination in interest from the smart money, it’s safe to say that there was a specific group of funds that slashed their entire stakes by the end of the third quarter. Intriguingly, Jonathan Lourie and Stuart Fiertz’s Cheyne Capital sold off the largest stake of the 700 funds watched by Insider Monkey, valued at close to $1.1 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dropped about $0.7 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Mercer International Inc. (NASDAQ:MERC). We will take a look at First Potomac Realty Trust (NYSE:FPO), United Financial Bancorp, Inc. (NASDAQ:UBNK), Silver Spring Networks Inc (NYSE:SSNI), and Zhaopin Ltd (ADR) (NYSE:ZPIN). This group of stocks’ market values resemble MERC’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $218 million in MERC’s case. Silver Spring Networks Inc (NYSE:SSNI) is the most popular stock in this table. On the other hand Zhaopin Ltd (ADR) (NYSE:ZPIN) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Mercer International Inc. (NASDAQ:MERC) is more popular among hedge funds. 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.