Is Resolute Forest Products Inc (RFP) Worthy of Your Portfolio?

Since Resolute Forest Products Inc (NYSE:RFP) has experienced bearish sentiment from hedge fund managers, logic holds that there was a specific group of hedge funds who were dropping their positions entirely by the end of the third quarter. Interestingly, Matthew Hulsizer’s PEAK6 Capital Management cashed in the biggest stake of the “upper crust” of funds tracked by Insider Monkey, totaling an estimated $0.9 million in call options. Peter Muller’s fund, PDT Partners, also dropped its stock, about $0.2 million worth.

Let’s now review hedge fund activity in other stocks similar to Resolute Forest Products Inc (NYSE:RFP). These stocks are Textainer Group Holdings Limited (NYSE:TGH), Ladenburg Thalmann Financial Services (NYSEAMEX:LTS), Gener8 Maritime Inc (NYSE:GNRT), and Haverty Furniture Companies, Inc. (NYSE:HVT). This group of stocks’ market caps are closest to RFP’s market cap.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $72 million, which is lower than the $203 million figure in RFP’s case. Gener8 Maritime Inc (NYSE:GNRT) is the most popular stock in this table, while Textainer Group Holdings Limited (NYSE:TGH) is the least popular one with only six funds having reported long positions. Resolute Forest Products Inc (NYSE:RFP) 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 Gener8 Maritime Inc (NYSE:GNRT) might be a better candidate to consider taking a long position in.

Disclosure: none