Is RealNetworks Inc (RNWK) Going to Burn These Hedge Funds?

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Seeing as RealNetworks Inc (NASDAQ:RNWK) has faced a declination in interest from the aggregate hedge fund industry, we can see that there were a few funds that slashed their entire stakes heading into Q4. It’s worth mentioning that Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising about $0.4 million in stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, also cut its stock, about $0.3 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 3 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as RealNetworks Inc (NASDAQ:RNWK) but similarly valued. These stocks are ESSA Bancorp, Inc. (NASDAQ:ESSA), United Online, Inc. (NASDAQ:UNTD), Contango Oil & Gas Company (NYSEMKT:MCF), and Enzo Biochem, Inc. (NYSE:ENZ). This group of stocks’ market caps match RealNetworks Inc (NASDAQ:RNWK)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ESSA 5 8959 1
UNTD 16 29783 -2
MCF 11 56975 -3
ENZ 10 7486 -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 $26 million. That figure was $37 million in RealNetworks Inc (NASDAQ:RNWK)’s case. United Online, Inc. (NASDAQ:UNTD) is the most popular stock in this table. On the other hand, ESSA Bancorp, Inc. (NASDAQ:ESSA) is the least popular one with only 5 bullish hedge fund positions. RealNetworks Inc (NASDAQ:RNWK) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, United Online, Inc. (NASDAQ:UNTD) might be a better candidate to consider a long position.

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