Is SEI Investments Company (SEIC) A Good Stock To Buy?

Since SEI Investments Company (NASDAQ:SEIC) has faced declining sentiment from hedge fund managers, it’s safe to say that there exists a select few hedgies that slashed their entire stakes by the end of the third quarter. At the top of the heap, James Parsons’ Junto Capital Management sold off the biggest stake of the “upper crust” of funds studied by Insider Monkey, totaling about $36.6 million in stock, and Principal Global Investors’ Columbus Circle Investors was right behind this move, as the fund dumped about $10.8 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to SEI Investments Company (NASDAQ:SEIC). These stocks are Everest Re Group Ltd (NYSE:RE), Teleflex Incorporated (NYSE:TFX), A. O. Smith Corporation (NYSE:AOS), and Broadridge Financial Solutions, Inc. (NYSE:BR). All of these stocks’ market caps are similar to SEIC’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $297 million in SEIC’s case. Teleflex Incorporated (NYSE:TFX) is the most popular stock in this table. On the other hand Everest Re Group Ltd (NYSE:RE) is the least popular one with only 18 bullish hedge fund positions. SEI Investments Company (NASDAQ:SEIC) 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 TFX might be a better candidate to consider taking a long position in.

Disclosure: None