Here is What Hedge Funds Think About HomeStreet Inc (HMST)

Since HomeStreet Inc (NASDAQ:HMST) has experienced declining sentiment from hedge fund managers, we can see that there exists a select few hedge funds that elected to cut their positions entirely heading into Q4. It’s worth mentioning that Richard Driehaus’ Driehaus Capital dumped the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $1.1 million in stock, and John Fichthorn’s Dialectic Capital Management was right behind this move, as the fund sold off about $0.3 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as HomeStreet Inc (NASDAQ:HMST) but similarly valued. These stocks are First Trust High Income Long/short Fund (NYSE:FSD), SunCoke Energy, Inc (NYSE:SXC), Helix Energy Solutions Group Inc. (NYSE:HLX), and Anworth Mortgage Asset Corporation (NYSE:ANH). This group of stocks’ market values are similar to HMST’s market value.

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 $73 million. That figure was $17 million in HMST’s case. SunCoke Energy, Inc (NYSE:SXC) is the most popular stock in this table. On the other hand First Trust High Income Long/short Fund (NYSE:FSD) is the least popular one with only 6 bullish hedge fund positions. HomeStreet Inc (NASDAQ:HMST) 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 SXC might be a better candidate to consider a long position.