Smart Money Sees A Lot to Like in IAC/InterActiveCorp (IACI)

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Since IAC/InterActiveCorp (NASDAQ:IACI) has experienced bearish sentiment from the smart money, we can see that there were a few hedgies that elected to cut their positions entirely by the end of the third quarter. It’s worth mentioning that Zach Schreiber’s Point State Capital cut the largest stake of all the hedgies tracked by Insider Monkey, worth close to $92.2 million in stock. Ben Gambill’s fund, Tiger Eye Capital, also dumped its stock, about $11.7 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to IAC/InterActiveCorp (NASDAQ:IACI). We will take a look at EnCana Corporation (USA) (NYSE:ECA), Axis Capital Holdings Limited (NYSE:AXS), Pilgrim’s Pride Corporation (NASDAQ:PPC), and Wynn Resorts, Limited (NASDAQ:WYNN). This group of stocks’ market values resemble IACI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ECA 27 416044 1
AXS 25 582721 1
PPC 28 389732 -1
WYNN 34 1066706 -1

As you can see these stocks had an average of 28.5 hedge funds with bullish positions and the average amount invested in these stocks was $614 million. That figure was $1.58 billion in IACI’s case. Wynn Resorts, Limited (NASDAQ:WYNN) is the most popular stock in this table. On the other hand Axis Capital Holdings Limited (NYSE:AXS) is the least popular one with only 25 bullish hedge fund positions. Compared to these stocks IAC/InterActiveCorp (NASDAQ:IACI) is more popular among hedge funds. Considering that hedge funds are quite fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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