What Do Hedge Funds Think of JG Wentworth Co (JGW)?

Seeing as JG Wentworth Co (NYSE:JGW) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there exists a select few hedgies who sold off their full holdings by the end of the third quarter. At the top of the heap, Steve Galbraith’s Herring Creek Capital said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, worth an estimated $0.8 million in stock, and Chao Ku’s Nine Chapters Capital Management was right behind this move, as the fund cut about $0.3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as JG Wentworth Co (NYSE:JGW) but similarly valued. We will take a look at API Technologies Corp (NASDAQ:ATNY), Performant Financial Corp (NASDAQ:PFMT), DryShips Inc. (NASDAQ:DRYS), and Marinus Pharmaceuticals Inc (NASDAQ:MRNS). This group of stocks’ market values match JGW’s market value.

As you can see these stocks had an average of an 8 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $22 million in JGW’s case. Performant Financial Corp (NASDAQ:PFMT) is the most popular stock in this table. On the other hand API Technologies Corp (NASDAQ:ATNY) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks JG Wentworth Co (NYSE:JGW) is even less popular than ATNY. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.