Is Strayer Education Inc (STRA) Going to Burn These Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. At the top of the heap, Paul Tudor Jones’s Tudor Investment Corp dumped the largest stake of the “upper crust” of funds followed by Insider Monkey, worth about $0.4 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dumped about $0.4 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Strayer Education Inc (NASDAQ:STRA). We will take a look at Meta Financial Group Inc. (NASDAQ:CASH), SunCoke Energy, Inc (NYSE:SXC), InnerWorkings, Inc. (NASDAQ:INWK), and Chromcraft Revington, Inc. (NYSEAMEX:CRC). This group of stocks’ market caps are similar to STRA’s market cap.

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $121 million. That figure was $50 million in STRA’s case. Chromcraft Revington, Inc. (NYSEAMEX:CRC) is the most popular stock in this table. On the other hand InnerWorkings, Inc. (NASDAQ:INWK) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Strayer Education Inc (NASDAQ:STRA) is even less popular than INWK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.