Should You Add InterOil Corporation (USA) (IOC) to Your Portfolio?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. At the top of the heap, Steve Cohen’s Point72 Asset Management sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $47.7 million in stock, and Scott Scher & Michael Prober’s Clovis Capital Management was right behind this move, as the fund cut about $13.8 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to InterOil Corporation (USA) (NYSE:IOC). These stocks are Eastgroup Properties Inc (NYSE:EGP), Radian Group Inc (NYSE:RDN), Coherent, Inc. (NASDAQ:COHR), and AMAYA INC (NASDAQ:AYA). This group of stocks’ market caps match IOC’s market cap.

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $320 million. That figure was $274 million in IOC’s case. Radian Group Inc (NYSE:RDN) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only eight investors holding shares. InterOil Corporation (USA) (NYSE:IOC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RDN might be a better candidate to consider taking a long position in.