Is Box Inc (BOX) Going to Burn These Hedge Funds?

Seeing as Box Inc (NYSE:BOX) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers who sold off their positions entirely in the third quarter. Interestingly, Peter Muller’s PDT Partners said goodbye to the largest investment of the 700 funds watched by Insider Monkey, comprising close to $1.8 million in stock, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt. was right behind this move, as the fund dropped about $1.6 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Box Inc (NYSE:BOX) but similarly valued. We will take a look at Etsy Inc (NASDAQ:ETSY), Wayfair Inc (NYSE:W), United States Steel Corporation (NYSE:X), and Nationstar Mortgage Holdings Inc (NYSE:NSM). This group of stocks’ market caps is similar to Box Inc (NYSE:BOX)’s market cap.

As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $469 million. That figure was $52 million in Box Inc (NYSE:BOX)’s case. Wayfair Inc (NYSE:W) is the most popular stock in this table. On the other hand, Etsy Inc (NASDAQ:ETSY) is the least popular one with only 3 bullish hedge fund positions. Box Inc (NYSE:BOX) 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, Wayfair Inc (NYSE:W) might be a better candidate to consider a long position.