Here is What Hedge Funds Think About Gulf Island Fabrication, Inc. (GIFI)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified GIFI as a viable investment and initiated a position in the stock.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Gulf Island Fabrication, Inc. (NASDAQ:GIFI) but similarly valued. We will take a look at Hutchinson Technology Incorporated (NASDAQ:HTCH), Kura Oncology Inc (NASDAQ:KURA), American Farmland Co (NYSEMKT:AFCO), and BG Staffing Inc (NYSEMKT:BGSF). This group of stocks’ market values match GIFI’s market value.

As you can see these stocks had an average of five funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $18 million in GIFI’s case. Hutchinson Technology Incorporated (NASDAQ:HTCH) is the most popular stock in this table. On the other hand BG Staffing Inc (NYSEMKT:BGSF) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Gulf Island Fabrication, Inc. (NASDAQ:GIFI) 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.

Disclosure: None