Here is What Hedge Funds Think About LendingClub Corp (LC)

Since LendingClub Corp (NYSE:LC) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies that elected to cut their positions entirely heading into Q4. It’s worth mentioning that George Soros’ Soros Fund Management cut the biggest stake of the “upper crust” of funds monitored by Insider Monkey, valued at about $48.7 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund dropped about $16.1 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 11 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to LendingClub Corp (NYSE:LC). These stocks are Albemarle Corporation (NYSE:ALB), Equity Lifestyle Properties, Inc. (NYSE:ELS), Owens Corning (NYSE:OC), and Hubbell Incorporated (NYSE:HUB). This group of stocks’ market values are closest to LC’s market value.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $661 million. That figure was $311 million in LC’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand Equity Lifestyle Properties, Inc. (NYSE:ELS) is the least popular one with only 13 bullish hedge fund positions. LendingClub Corp (NYSE:LC) 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 OC might be a better candidate to consider a long position.