Is Sears Holdings Corporation (SHLD) Worthy of Your Portfolio?

Judging by the fact that Sears Holdings Corporation (NASDAQ:SHLD) has faced bearish sentiment from the smart money, we can see that there exists a select few funds that slashed their entire stakes by the end of the third quarter. Intriguingly, Eric Chen’s Antipodean Advisors said goodbye to the biggest position of all the investors studied by Insider Monkey, comprising an estimated $3.7 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $1.6 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Sears Holdings Corporation (NASDAQ:SHLD). We will take a look at EnPro Industries, Inc. (NYSE:NPO), Innoviva Inc (NASDAQ:INVA), Kearny Financial Corp. (NASDAQ:KRNY), and Ameris Bancorp (NASDAQ:ABCB). This group of stocks’ market caps match SHLD’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $205 million, which is lower than the $769 million in SHLD’s case. Innoviva Inc (NASDAQ:INVA) is the most popular stock in this table with 21 funds holding shares. On the other hand EnPro Industries, Inc. (NYSE:NPO) is the least popular one with only 12 bullish hedge fund positions. Sears Holdings Corporation (NASDAQ:SHLD) 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 Innoviva Inc (NASDAQ:INVA) might be a better candidate to consider taking a long position in.

Disclosure: none