What Do Hedge Funds Think of ReTailMeNot Inc (SALE)?

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Judging by the fact that ReTailMeNot Inc (NASDAQ:SALE) has faced declining sentiment from hedge fund managers, logic holds that there were a few money managers who sold off their positions entirely in the third quarter. Intriguingly, James A. Noonan’s Pivot Point Capital cut the biggest position of the 700 funds followed by Insider Monkey, totaling an estimated $9.2 million in stock. Brian Taylor’s fund, Pine River Capital Management, also said goodbye to its stock, about $6.4 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 6 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as ReTailMeNot Inc (NASDAQ:SALE) but similarly valued. We will take a look at Sunedison Semiconductor Ltd (NASDAQ:SEMI), Fred’s, Inc. (NASDAQ:FRED), Global Brass and Copper Holdings Inc (NYSE:BRSS), and San Juan Basin Royalty Trust (NYSE:SJT). This group of stocks’ market valuations are similar to SALE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SEMI 21 216785 -3
FRED 5 1638 -2
BRSS 21 36057 2
SJT 7 60838 -2

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $80 million in SALE’s case. Sunedison Semiconductor Ltd (NASDAQ:SEMI) is the most popular stock in this table. On the other hand Fred’s, Inc. (NASDAQ:FRED) is the least popular one with only 5 bullish hedge fund positions. ReTailMeNot Inc (NASDAQ:SALE) 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 SEMI might be a better candidate to consider a long position.

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