How H&R Block Inc. (HRB) Stacks Up Against Similarly Valued Stocks

Since H&R Block, Inc. (NYSE:HRB) has sustained bearish sentiment from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers who sold off their entire stakes heading into Q4. Intriguingly, Jean-Marie Eveillard’s First Eagle Investment Management said goodbye to the biggest investment of all the hedgies monitored by Insider Monkey, comprising about $132.3 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $25.7 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as H&R Block, Inc. (NYSE:HRB) but similarly valued. These stocks are Nutanix Inc. (NASDAQ:NTNX), Israel Chemicals Ltd. (NYSE:ICL), Carlyle Group LP (NASDAQ:CG), and Royal Gold, Inc USA) (NASDAQ:RGLD). This group of stocks’ market caps resemble HRB’s market cap.

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 $94 million. That figure was $154 million in HRB’s case. Nutanix Inc. (NASDAQ:NTNX) is the most popular stock in this table. On the other hand Israel Chemicals Ltd. (NYSE:ICL) is the least popular one with only 4 bullish hedge fund positions. H&R Block, Inc. (NYSE:HRB) 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 NTNX might be a better candidate to consider taking a long position in.