Should You Avoid Cinemark Holdings, Inc. (CNK)?

Seeing as Cinemark Holdings, Inc. (NYSE:CNK) has weathered falling interest from the smart money, logic holds that there exists a select few hedge funds that slashed their entire stakes last quarter. At the top of the heap, Greg Poole’s Echo Street Capital Management got rid of the biggest position of the “upper crust” of funds monitored by Insider Monkey, worth close to $9.1 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also dropped its stock, about $7.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Cinemark Holdings, Inc. (NYSE:CNK). These stocks are Thor Industries, Inc. (NYSE:THO), Ionis Pharmaceuticals Inc (NASDAQ:IONS), LATAM Airlines Group SA (ADR) (NYSE:LFL), and Endurance Specialty Holdings Ltd. (NYSE:ENH). This group of stocks’ market values are similar to CNK’s market value.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $217 million. That figure was $281 million in CNK’s case. Thor Industries, Inc. (NYSE:THO) is the most popular stock in this table. On the other hand LATAM Airlines Group SA (ADR) (NYSE:LFL) is the least popular one with only 8 bullish hedge fund positions. Cinemark Holdings, Inc. (NYSE:CNK) 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 THO might be a better candidate to consider taking a long position in.

Disclosure: None