Is Straight Path Communications Inc (STRP) Worthy of Your Portfolio?

Due to the fact that Straight Path Communications Inc (NYSEMKT:STRP) has faced a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of money managers that decided to sell off their positions entirely by the end of the third quarter. Interestingly, Brad Farber’s Atika Capital cut the largest stake of all the hedgies tracked by Insider Monkey, worth close to $1 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $0.8 million worth.

Let’s now review hedge fund activity in other stocks similar to Straight Path Communications Inc (NYSEMKT:STRP). These stocks are Primero Mining Corp (NYSE:PPP), Idera Pharmaceuticals Inc (NASDAQ:IDRA), Reading International, Inc. (NASDAQ:RDI), and Aralez Pharmaceuticals Inc (NASDAQ:ARLZ). All of these stocks’ market caps are closest to STRP’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $31 million in STRP’s case. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is the most popular stock in this table. On the other hand Primero Mining Corp (NYSE:PPP) is the least popular one with only five bullish hedge fund positions. Straight Path Communications Inc (NYSEMKT:STRP) 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 ARLZ might be a better candidate to consider taking a long position in.

Disclosure: none