Should you Follow These Hedge Funds’ Moves? The Overall Sentiment May Give an Answer to this Question

Abrams Capital Management, founded by David Abrams, disclosed acquiring 266,183 shares of Barnes & Noble Education Inc. (NYSE:BNED) at a weighted average price of $12.53. According to the recently-filed Form 4, the investment firm owns 7.41 million shares of the recently spun-off company. As a matter of fact, Abrams Capital has been continuously acquiring shares of Barnes & Noble Education since its spin-off, as the recent stock market mini-crashes made this stock even more attractive. On September 9, the contract operator of bookstores revealed its first post-IPO earnings report, which partially disclosed the potential of Barnes & Noble Education as a standalone company. The company’s sales increased by 5.9% year-over-year to $239 million, whereas its loss widened to $26.9 million from $26.2 million. Even so, Barnes & Noble Education Inc. (NYSE:BNED) still has more room to grow its activities and operations, considering that 53% of the U.S. college and university-affiliated bookstores are managed by their own institutions.

As stated in another Form 4 filing, Coliseum Capital Management, founded by Christopher Shackelton and Adam Gray, boosted its holdings in Accuride Corporation (NYSE:ACW) by 68,092 shares. These shares were acquired at a weighted average price of $2.75, while the stake currently owned by the investment firm amasses 7.47 million shares. Just recently, Coliseum Capital reported lifting its position in Accuride Corporation by an additional 250,214 shares. The manufacturer of commercial vehicle components lost some of its charm among the hedge fund industry during the second quarter, as the number investors with stakes in the company decreased to 14 from 20 quarter-over-quarter. Similarly, the value of their holdings decreased to $43.97 million from $58.69 million. It is also worth to mention that these hedge fund investors accumulated 23.80% of the company’s outstanding shares at the end of the June quarter, which could point to the fact that the smart money still believes in the future of Accuride Corporation. Peter Schliemann’s Rutabaga Capital Management held its position in Accuride Corporation (NYSE:ACW) unchanged during the June quarter at 2.86 million shares.

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