Is Isle of Capri Casinos (ISLE) Going to Burn These Hedge Funds?

Due to the fact that Isle of Capri Casinos (NASDAQ:ISLE) has witnessed flat interest from the aggregate hedge fund industry, it’s easy to see that there were a few money managers that decided to sell off their entire stakes last quarter. It’s worth mentioning that Don Morgan’s Brigade Capital sold off the biggest investment of the 700 funds followed by Insider Monkey, worth close to $9.2 million in stock, and Buckley Ratchford’s Wingspan Investment Management was right behind this move, as the fund sold off about $3.6 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Isle of Capri Casinos (NASDAQ:ISLE) but similarly valued. We will take a look at Alamo Group, Inc. (NYSE:ALG), CenterState Banks Inc (NASDAQ:CSFL), Hersha Hospitality Trust (NYSE:HT), and Dominion Diamond Corp (NYSE:DDC). This group of stocks’ market valuations are similar to ISLE’s market valuation.

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 $80 million. That figure was $220 million in ISLE’s case. CenterState Banks Inc (NASDAQ:CSFL) is the most popular stock in this table. On the other hand Alamo Group, Inc. (NYSE:ALG) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Isle of Capri Casinos (NASDAQ:ISLE) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None