Here is What Hedge Funds Think About hhgregg, Inc. (HGG)

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Because hhgregg, Inc. (NYSE:HGG) has faced a declination in interest from the smart money, it’s easy to see that there was a specific group of hedgies who were dropping their full holdings heading into Q4. At the top of the heap, Cliff Asness’ AQR Capital Management cut the biggest position of the 700 funds monitored by Insider Monkey, comprising close to $0.5 million in stock. Youlia Miteva’s fund, Proxima Capital Management, also sold off its stock, about $0.1 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as hhgregg, Inc. (NYSE:HGG) but similarly valued. These stocks are Sharps Compliance Corp. (NASDAQ:SMED), Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP), SL Industries, Inc. (NYSEMKT:SLI), and Violin Memory Inc (NYSE:VMEM). This group of stocks’ market valuations resembles hhgregg, Inc. (NYSE:HGG)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SMED 5 3923 1
ADAP 12 45571 -4
SLI 6 47332 0
VMEM 7 8724 -4

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $12 million in hhgregg, Inc. (NYSE:HGG)’s case. Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) is the most popular stock in this table. On the other hand, Sharps Compliance Corp. (NASDAQ:SMED) is the least popular one with only 5 bullish hedge fund positions. hhgregg, Inc. (NYSE:HGG) 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, Adaptimmune Therapeutics PLC – ADR (NASDAQ:ADAP) might be a better candidate to consider a long position.

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