What Do Hedge Funds Think of FTI Consulting, Inc. (FCN)?

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Since FTI Consulting, Inc. (NYSE:FCN) has witnessed a declination in interest from hedge fund managers, it’s safe to say that there was a specific group of money managers that decided to sell off their full holdings in the third quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management sold off the biggest position of all the hedgies monitored by Insider Monkey, valued at close to $17.3 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund dumped about $0.2 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as FTI Consulting, Inc. (NYSE:FCN) but similarly valued. These stocks are Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR), Herman Miller, Inc. (NASDAQ:MLHR), Zendesk Inc (NYSE:ZEN), and DineEquity Inc (NYSE:DIN). This group of stocks’ market values are similar to FCN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EBR 6 10869 2
MLHR 26 126616 3
ZEN 21 282574 -2
DIN 17 217081 -6

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $159 million. That figure was $24 million in FCN’s case. Herman Miller, Inc. (NASDAQ:MLHR) is the most popular stock in this table. On the other hand Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR) is the least popular one with only 6 bullish hedge fund positions. FTI Consulting, Inc. (NYSE:FCN) 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 MLHR might be a better candidate to consider a long position.

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