Is Remy International Inc (REMY) Going to Burn These Hedge Funds?

Because Remy International Inc (NASDAQ:REMY) has experienced a decline in interest from the smart money, it’s safe to say that there was a specific group of funds that slashed their positions entirely by the end of the third quarter. Intriguingly, Tom Sandell’s Sandell Asset Management dumped the biggest stake of the 700 funds tracked by Insider Monkey, worth an estimated $14.9 million in stock, and George McCabe’s Portolan Capital Management was right behind this move, as the fund sold off about $7.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Remy International Inc (NASDAQ:REMY) but similarly valued. These stocks are Nantkwest Inc (NASDAQ:NK), PIMCO Corporate&Income Opportunity Fund (NYSE:PTY), Stepan Company (NYSE:SCL), and Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO). This group of stocks’ market values match REMY’s market value.

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 $54 million. That figure was $246 million in REMY’s case. Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) is the most popular stock in this table. On the other hand Nantkwest Inc (NASDAQ:NK) is the least popular one with only 5 bullish hedge fund positions. Remy International Inc (NASDAQ:REMY) 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 SIMO might be a better candidate to consider a long position.