Is Ethan Allen Interiors Inc. (ETH) Going to Burn These Hedge Funds?

Page 2 of 2

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. It’s worth mentioning that Peter Algert and Kevin Coldiron’s Algert Coldiron Investors dropped the largest investment of the “upper crust” of funds monitored by Insider Monkey, comprising about $0.9 million in stock, and James Dondero’s Highland Capital Management was right behind this move, as the fund dropped about $0.2 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Ethan Allen Interiors Inc. (NYSE:ETH). We will take a look at Teekay Offshore Partners L.P. (NYSE:TOO), Sun Hydraulics Corporation (NASDAQ:SNHY), Solar Capital Ltd. (NASDAQ:SLRC), and Apollo Group Inc (NASDAQ:APOL). All of these stocks’ market caps match ETH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TOO 10 119379 0
SNHY 5 95714 -2
SLRC 11 42231 0
APOL 17 128024 1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $100 million in ETH’s case. Apollo Group Inc (NASDAQ:APOL) is the most popular stock in this table. On the other hand Sun Hydraulics Corporation (NASDAQ:SNHY) is the least popular one with only 5 bullish hedge fund positions. Ethan Allen Interiors Inc. (NYSE:ETH) 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 APOL might be a better candidate to consider taking a long position in.

Disclosure: None


Page 2 of 2