Should You Avoid Washington Prime Group Inc (WPG)?

Because Washington Prime Group Inc (NYSE:WPG) has witnessed declining sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds who were dropping their full holdings in the third quarter. It’s worth mentioning that Michael Swotes’s Castle Ridge Investment Management dropped the biggest investment of all the investors watched by Insider Monkey, valued at close to $4.4 million in stock. Jean-Marie Eveillard’s fund, First Eagle Investment Management, also dropped its stock, about $3.5 million worth of WPG shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Washington Prime Group Inc (NYSE:WPG) but similarly valued. We will take a look at Armstrong World Industries, Inc. (NYSE:AWI), Washington Real Estate Investment Trust (NYSE:WRE), Wolverine World Wide, Inc. (NYSE:WWW), and LogMeIn Inc (NASDAQ:LOGM). This group of stocks’ market valuations match WPG’s market valuation.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $453 million. That figure was $83 million in WPG’s case. Armstrong World Industries, Inc. (NYSE:AWI) is the most popular stock in this table. On the other hand Washington Real Estate Investment Trust (NYSE:WRE) is the least popular one with only 11 bullish hedge fund positions. Washington Prime Group Inc (NYSE:WPG) 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 AWI might be a better candidate to consider taking a long position in.

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Disclosure: None