Should You Avoid XO Group Inc (XOXO)?

Due to the fact that XO Group Inc (NYSE:XOXO) has experienced a decline in interest from hedge fund managers, we can see that there were a few hedgies that elected to cut their entire stakes last quarter. Intriguingly, Amish Mehta’s SQN Investors cut the biggest investment of the 700 funds monitored by Insider Monkey, totaling an estimated $6.5 million in stock, and Peter S. Park’s Park West Asset Management was right behind this move, as the fund said goodbye to about $3.6 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to XO Group Inc (NYSE:XOXO). We will take a look at General Communication, Inc. (NASDAQ:GNCMA), CSW Industrials Inc (NASDAQ:CSWI), Aegean Marine Petroleum Network Inc. (NYSE:ANW), and Tower International Inc (NYSE:TOWR). This group of stocks’ market caps are similar to XOXO’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $131 million in XOXO’s case. Aegean Marine Petroleum Network Inc. (NYSE:ANW) is the most popular stock in this table. On the other hand General Communication, Inc. (NASDAQ:GNCMA) is the least popular one with only 7 bullish hedge fund positions. XO Group Inc (NYSE:XOXO) 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 ANW might be a better candidate to consider taking a long position in.

Disclosure: None