Here is What Hedge Funds Think About Qihoo 360 Technology Co Ltd (QIHU)

Due to the fact that Qihoo 360 Technology Co Ltd (NYSE:QIHU) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers who sold off their entire stakes in the third quarter. It’s worth mentioning that Karthik Sarma’s SRS Investment Management said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, comprising about $75.5 million in stock. Christopher R. Hansen’s fund, Valiant Capital, also dumped its stock, about $69.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 13 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Qihoo 360 Technology Co Ltd (NYSE:QIHU). We will take a look at Mid America Apartment Communities Inc (NYSE:MAA), Rite Aid Corporation (NYSE:RAD), Zayo Group Holdings Inc (NYSE:ZAYO), and Fluor Corporation (NEW) (NYSE:FLR). This group of stocks’ market valuations are similar to QIHU’s market valuation.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $285 million in QIHU’s case. Rite Aid Corporation (NYSE:RAD) is the most popular stock in this table. The least popular one is Mid America Apartment Communities Inc (NYSE:MAA). Qihoo 360 Technology Co Ltd (NYSE:QIHU), with 19 bullish hedge fund positions is not the least popular stock in this group, but still it has not attracted much attention from investors. This may indicate that this is not a good buying opportunity; therefore, we’d rather spend our time focusing on stocks that hedge funds are most collectively bullish on, such as RAD in this particular case.