Is Diamond Hill Investment Group, Inc. (DHIL) Going to Burn These Hedge Funds?

Seeing as Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) has witnessed a declination in interest from hedge fund managers, it’s safe to say that there is a sect of funds that elected to cut their positions entirely last quarter. It’s worth mentioning that Neil Chriss’ Hutchin Hill Capital said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, comprising an estimated $0.3 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 2 funds last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) but similarly valued. These stocks are Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH), Dime Community Bancshares, Inc. (NASDAQ:DCOM), SJW Corp. (NYSE:SJW), and Transportadora de Gas del Sur SA (ADR) (NYSE:TGS). This group of stocks’ market values resemble DHIL’s market value.

As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $75 million in DHIL’s case. Sportsman’s Warehouse Holdings Inc (NASDAQ:SPWH) is the most popular stock in this table. On the other hand Transportadora de Gas del Sur SA (ADR) (NYSE:TGS) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Diamond Hill Investment Group, Inc. (NASDAQ:DHIL) is even less popular than TGS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed 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.