Is Simpson Manufacturing Co, Inc. (SSD) Going to Burn These Hedge Funds?

Seeing as Simpson Manufacturing Co, Inc. (NYSE:SSD) has witnessed a bearish sentiment from the smart money, logic holds that there is a sect of funds that decided to sell off their entire stakes in the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management sold off the biggest stake of all the hedgies followed by Insider Monkey, valued at about $5.9 million in stock. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $3 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Simpson Manufacturing Co, Inc. (NYSE:SSD) but similarly valued. We will take a look at Alliance Resource Partners, L.P. (NASDAQ:ARLP), Hillenbrand, Inc. (NYSE:HI), New York REIT Inc (NYSE:NYRT), and Haemonetics Corporation (NYSE:HAE). This group of stocks’ market values resembles Simpson Manufacturing Co, Inc. (NYSE:SSD)’s market value.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was $186 million in Simpson Manufacturing Co, Inc. (NYSE:SSD)’s case. Hillenbrand, Inc. (NYSE:HI) is the most popular stock in this table. On the other hand, Alliance Resource Partners, L.P. (NASDAQ:ARLP) is the least popular one with only 5 bullish hedge fund positions. Simpson Manufacturing Co, Inc. (NYSE:SSD) 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, Hillenbrand, Inc. (NYSE:HI) might be a better candidate to consider a long position.