Is Central Pacific Financial Corp. (CPF) Going to Burn Investors?

Judging by the fact that Central Pacific Financial Corp. (NYSE:CPF) has gone through bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers that slashed their full holdings heading into Q4. At the top of the heap, Paul Tudor Jones’ Tudor Investment Corp dropped the biggest investment of the “upper crust” of funds followed by Insider Monkey, totaling close to $0.3 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund said goodbye to about $0.1 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Central Pacific Financial Corp. (NYSE:CPF). These stocks are Lattice Semiconductor (NASDAQ:LSCC), MedEquities Realty Trust Inc (NYSE:MRT), Northfield Bancorp Inc (NASDAQ:NFBK), and Walker & Dunlop Inc. (NYSE:WD). This group of stocks’ market values are closest to CPF’s market value.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $55 million in CPF’s case. MedEquities Realty Trust Inc (NYSE:MRT) is the most popular stock in this table. On the other hand Northfield Bancorp Inc (NASDAQ:NFBK) is the least popular one with only 5 bullish hedge fund positions. Central Pacific Financial Corp. (NYSE:CPF) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MRT might be a better candidate to consider taking a long position in.

Disclosure: None