Here is What Hedge Funds Think About Renren Inc (RENN)

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Since Renren Inc (NYSE:RENN) has experienced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of fund managers that slashed their entire stakes last quarter. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the largest stake of the “upper crust” of funds monitored by Insider Monkey, valued at close to $0.1 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also cut its stock, about $0.1 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 1 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Renren Inc (NYSE:RENN) but similarly valued. These stocks are TerraForm Global Inc (NASDAQ:GLBL), MiMedx Group Inc (NASDAQ:MDXG), American Woodmark Corporation (NASDAQ:AMWD), and Sunrun Inc (NASDAQ:RUN). This group of stocks’ market valuations resemble RENN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GLBL 23 251228 23
MDXG 17 24004 -5
AMWD 15 106150 -5
RUN 14 159222 14

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 $135 million. That figure was just $8 million in RENN’s case. TerraForm Global Inc (NASDAQ:GLBL) is the most popular stock in this table, while Sunrun Inc (NASDAQ:RUN) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Renren Inc (NYSE:RENN) is even less popular than RUN. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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