Here is What Hedge Funds Think About AeroVironment, Inc. (AVAV)

Seeing as AeroVironment, Inc. (NASDAQ:AVAV) has witnessed falling interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few money managers that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Glenn Russell Dubin’s Highbridge Capital Management cut the largest position of all the hedgies tracked by Insider Monkey, comprising close to $1.5 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $1.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to AeroVironment, Inc. (NASDAQ:AVAV). These stocks are Haynes International, Inc. (NASDAQ:HAYN), Invacare Corporation (NYSE:IVC), INTL Fcstone Inc (NASDAQ:INTL), and ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS). All of these stocks’ market caps are closest to AVAV’s market cap.

As you can see these stocks had an average of 12.75 hedge funds with bullish positions and the average amount invested in these stocks was $91 million. That figure was $21 million in AVAV’s case. ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) is the most popular stock in this table. On the other hand Haynes International, Inc. (NASDAQ:HAYN) is the least popular one with only 8 bullish hedge fund positions. AeroVironment, Inc. (NASDAQ:AVAV) 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 IMOS might be a better candidate to consider a long position.