Is Actua Corp (ACTA) a Good Stock to Buy?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors sold off the largest stake of all the investors studied by Insider Monkey, worth close to $0.1 million in stock, and Philip Hempleman’s Ardsley Partners was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Actua Corp (NASDAQ:ACTA). We will take a look at SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN), XO Group Inc (NYSE:XOXO), General Communication, Inc. (NASDAQ:GNCMA), and CSW Industrials Inc (NASDAQ:CSWI). This group of stocks’ market values match ACTA’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SCLN 20 64807 6
XOXO 15 130636 -1
GNCMA 7 14153 0
CSWI 9 71244 1

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $70 million. That figure was $17 million in ACTA’s case. SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) is the most popular stock in this table. On the other hand General Communication, Inc. (NASDAQ:GNCMA) is the least popular one with only 7 bullish hedge fund positions. Actua Corp (NASDAQ:ACTA) 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 SCLN might be a better candidate to consider taking a long position in.

Disclosure: None


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