Is Ocean Rig UDW Inc (ORIG) Going to Burn These Hedge Funds?

Because Ocean Rig UDW Inc (NASDAQ:ORIG) has experienced declining sentiment from the smart money, we can see that there exist a select few money managers who were dropping their full holdings last quarter. Intriguingly, Jonathan Barrett and Paul Segal’s Luminus Management sold off the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at about $8.6 million in stock. Christopher A. Winham’s fund, Tide Point Capital, also dropped its stock, about $8.6 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 1 fund last quarter.

Let’s go over hedge fund activity in other stocks similar to Ocean Rig UDW Inc (NASDAQ:ORIG). We will take a look at Martha Stewart Living Omnimedia, Inc. (NYSE:MSO), Mercantile Bank Corp. (NASDAQ:MBWM), Federated National Holding Co (NASDAQ:FNHC), and Advaxis, Inc. (NASDAQ:ADXS). This group of stocks’ market caps are closest to ORIG’s market cap.

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $77 million in ORIG’s case. Advaxis, Inc. (NASDAQ:ADXS) is the most popular stock in this table. On the other hand Mercantile Bank Corp. (NASDAQ:MBWM) is the least popular one with only 5 bullish hedge fund positions. Ocean Rig UDW Inc (NASDAQ:ORIG) 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, ADXS might be a better candidate to consider a long position.